Global investor Arrow Capital Partners and US-based global alternatives firm Cerberus Capital Management have launched a €2 bn joint venture to fund a logistics buying spree in Europe.
The Strategic Industrial Real Estate (SIRE) JV will invest in core-plus industrial and logistics assets yielding more than 5%, as well as vacant assets with strong lease-up potential.
Seeking to capitalise on the boom which e-commerce is fuelling in logistics, the fund will target urban infill locations in major European cities in Germany, Benelux, UK, Italy and Spain, as well as France, the Nordics and central Europe.
Katherine Parker, partner at Arrow Capital Partners, will lead the SIRE JV.
Martyn McCarthy, managing partner of Arrow Capital Partners, said: ‘With SIRE, we are aiming to create value by acquiring and aggregating single assets ranging from €5 mln to €100 mln and portfolios between €10 mln to €500 mln, that have strong income reversion in markets where the supply/demand dynamics support above-average rental growth, and where targeted capital expenditure will enhance the assets' attraction to tenants and improve occupancy.'
Earlier this year, Cerberus Capital Management appointed Arrow Capital Partners to manage a €750 mln portfolio of light industrial assets in Spain.
