Global investor Pictet Alternative Advisors and UK-based investor Marchmont Investment Management have acquired a development site in south east England for £30 mln (€33.4 mln).
The vendor in the transaction was Virgin Atlantic Airways. The deal includes a short-term sale-and-leaseback agreement.
The purchase of the 10-acre plot in Crawley is for the buyers’ joint venture, which is focused upon last-mile logistics. The deal is the fifth purchase for the £200 mln (€222.8 mln) project.
Charlie Baigler, head of acquisitions, real estate at Pictet Alternative Advisors, said: 'We believe there is significant opportunity for value creation in the UK urban logistics and industrial space, despite the economic headwinds.
'The demand drivers, which are principally fuelled by e-commerce penetration, combined with the dwindling supply, particularly in the south east, should maintain upward pressure on rents. To successfully execute this strategy, a high quality, sector specialist JV partner is needed, which is exactly what we have with Marchmont.'
Cam Fraser, director at Marchmont, said: 'We are delighted to have completed on the purchase of this prime development opportunity as part of our strategic drive with Pictet Alternative Advisors to build a portfolio of core UK logistics assets.
'We see Crawley as a key South East market with an under-supply of Grade A quality mid-box units. Marchmont have been very active in the urban industrial space to date and we view this programmatic partnership with Pictet Alternative Advisors as the next, exciting step in the evolution of our business. PAA share our conviction of the fundamentals of this strategy and to partner with an investor of this pedigree is a great partnership.'
