The InfraRed Urban Logistics Income Fund, managed by InfraRed Capital Partners, has acquired a last-mile portfolio in the UK from value-add specialist NW1 Partners for (£50.8 mln) €57 mln.
The 261,000 ft2 (24,250 m2) portfolio comprises eight urban industrial assets predominately located in Greater London and the South East, with two assets in Manchester and Birmingham.
Alongside local operating partner Marchmont Investment Management, NW1 assembled the portfolio from September 2018 in line with its small-to-mid cap aggregation strategy, which targets niche opportunities in markets with compelling local supply and demand fundamentals.
David Boyle, managing partner, NW1 Partners, said: 'Having identified the attractiveness of the last-mile logistics market, we worked alongside our local operating partner Marchmont to build a portfolio of small cap assets.
'Having amassed a quality portfolio of assets in strong urban locations whilst watching the last mile thesis unfold, we are pleased to have now secured an opportunity to deliver very attractive risk-adjusted returns for our client with the disposal of this portfolio.'
Tim Lumsdon, director, Marchmont Investment Management added: 'We are delighted to have successfully concluded our first venture with NW1 Partners.
'Having identified the opportunity to aggregate assets in the UK urban logistics sector and added value to the portfolio through a pro-active approach to asset management, we are pleased to have concluded the sale to InfraRed. The deal reflects our firm belief that the fundamentals of this sector provide a robust platform for investment performance.'
NW1 and Marchmont were advised by DTRE, Jones Day, Osborne Clarke and Malcolm Hollis.
