Global private investment firm Centerbridge Partners is joining forces with London-based Industrial Outdoor Storage asset specialist Modal to launch an investment joint venture focused on IOS properties across the UK.
The new platform has just carried out the first acquisition with the purchase of a 7.4-acre site in Trafford Park, Manchester.
The joint venture will invest in IOS properties that provide storage space for vehicle parking, containers, trailers, construction materials, machinery, and other goods. Target markets for the joint venture include infill locations around major cities and key logistics nodes in the UK.
Centerbridge is making this investment from its second real estate fund, which has $2.3 bn in capital commitments.
'By partnering with the Modal team, we will have a powerful platform from which to capitalize on the attractive fundamentals of the sector and build a market leading IOS portfolio in the UK,' said Steve Skaar, senior managing director at Centerbridge.
IOS properties are a mission-critical component of supply chains, benefiting from similar demand tailwinds as traditional industrial and logistics real estate assets. The limited supply of IOS sites has been further reduced over the past decade due to the development of many such sites into traditional warehouses or residential properties, resulting in low vacancy and rising rents.
'IOS assets play a crucial role in supply chains and the broader logistics ecosystem. We see tailwinds in the sector as growing tenant demand meets limited supply,' said Nico Papamichael, managing director at Centerbridge.
Modal was founded in 2023 by alumni of Blackstone and M7, and the company is exclusively focused on acquiring and optimizing outdoor storage facilities strategically located in close proximity to major transportation hubs and dense metropolitan areas.
