Global property manager Invesco Real Estate is adding more investment equity to Logistics Capital Partners' (LCP) platform that will enable the Europe industrial specialist to develop in excess of €1 bn of assets faster than anticipated in its three-to-five-year plan.
Invesco says the extra preferred equity amounts to one third more on top of the original injection in late 2018.
The firm declined to say how much preferred equity is involved. However, the extension and growth of the investment facilitates the opportunity to exceed LCP’s three-to-five-year strategic plan to develop over €1bn of new logistics assets across Europe.
The move comes after a successful first year, Invesco added.
Invesco is providing growth capital to the developer on behalf of its strategic opportunities investment programme, further strengthening LCP’s balance sheet for deployment into new development projects, and thus growing its team across key logistics markets in the region.
Bert Crouch, managing director, portfolio management, at Invesco, said, ‘Following the impressive successes that LCP has achieved since beginning our partnership in late 2018, including winning new projects from key international occupiers, the opportunity to increase our investment is the right business decision for us.’
He added, ‘Their niche approach within this fast-growing market fits well with our strategic approach and we continue to be impressed with the growth of their business overall in terms of AUM, pipeline access as well as their growing team of high calibre experts. This investment ultimately increases the opportunity for long-term, secure income and attractive total returns for our underlying clients to whom we have a fiduciary responsibility.’
Since the original facility was announced , LCP has been winning new development projects, buying land and hiring across Belgium, France, Italy, The Netherlands, and Spain.
LCP’s growth plan involves delivering projects across key logistics hubs with a view to using advanced technology and environmental innovations. Recent projects include the development of LCP Trecate XXL, a new high efficiency 211,000 sq m distribution hub located in Trecate, Novara in the East of Milan.
The company has won three new projects with an unnamed global online retailer, totalling 400,000 sq m. In parallel to its development business, the firm is also growing is asset management services for existing assets and portfolios. It has around €700 mln of asset management mandates and expects this to reach just under €1bn by the end of the year.
Over the last 12 month it has added a further 1.2 mln sq m to its balance sheet pipeline. Around 60% of this has been pre-let.
James Markby, managing director at LCP, said, ‘LCP has evolved rapidly along with the sector and, most importantly, with our clients’ needs.’
He added, ‘Demand for new logistics buildings is stronger than ever in all European markets. In addition to the need for extra space for e-commerce operators, a trend that has been going on several years now, we also see traditional retailers looking to reconfigure their logistics footprints and a step-up in scale of the operations of the traditional parcel and transport companies.’
He explained, ‘Only a proportion of this demand can be covered by existing buildings, but for longer term business planning the majority require the efficiencies and opportunities that new development provides in terms of scale, energy, cost performance, heights and automation.’
LCP was founded by Markby, Kristof Verstraeten, and Andrea Benvenuti.
