Quilvest Capital Partners and US industrial outdoor storage (IOS) real estate investor Axis IOS have made a first acquisition for a new partnership created to buy and operate a $500m portfolio of assets.
The pair have launched the venture to invest in a portfolio IOS properties situated within key logistics markets across the US, and have acquired a 16.8-acre site in San Antonio, Texas for an undisclosed amount.
The joint venture intends to increase the property’s value by converting it from a single-use building for one company to a shared space for multiple companies in different industries.
Investors are attracted to the IOS sector due to its growth prospects, driven by long-term trends such as onshoring, e-commerce, infrastructure investments, and a shortage of outdoor storage space. IOS facilities play a crucial role in the industrial and logistics supply chain, catering to various industries and users across transportation, logistics, and construction.
As businesses seek ways to streamline operations, manage supply-chain disruptions, and adapt to changing consumer demands, the demand for IOS facilities is expected to continue rising.
Barry Hammerman, partner and co-head of real estate at Quilvest, said: “We began investing in IOS in 2021 and are delighted to expand our portfolio in partnership with Axis. Our strategy has been developed to capitalise on the attractive opportunities offered by a growing and critical sector that has demonstrated resilience across market cycles.
“With the successful completion of our first acquisition, we are confident in the ability to execute on a healthy and growing pipeline of deals.”
Crawford Arnold, partner and founder of Axis IOS, said: “With our exclusive focus on the industrial outdoor storage sector combined with our team’s significant real estate experience, we are excited to form a partnership with Quilvest to execute in this high-potential sector.”
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