Industrial Ownership (IO) has launched a £120 mln (€170 mln) fund with the backing of Grosvenor, the privately owned property group, and Quilvest, a Luxembourg-based global independent wealth manager and private equity investor.
Industrial Ownership (IO) has launched a £120 mln (€170 mln) fund with the backing of Grosvenor, the privately owned property group, and Quilvest, a Luxembourg-based global independent wealth manager and private equity investor.
The launch of the new vehicle follows the completion of the first IO investment programme with Grosvenor in January 2013. In total, IO has bought 14 industrial estates for the joint venture at a combined cost of around £35 mln.
The fund will focus on multi-let industrial property and will be managed by IO.
'The new vehicle provides a compelling opportunity for two international property investors to access the specialist management skills required in the multi-let industrial sector,' said Angus Scott-Brown, managing director of IO.
He added: 'For our first venture with Grosvenor in 2013 we spotted the opportunity to generate strong returns by acquiring multi-let industrial estates at relatively high yields and growth. Now, with the gap between yields and the cost of capital still attractive, it is the limited supply and lack of new development that suggests a strong period of rental value growth.'
