Swiss private markets firm Partners Group has agreed to invest in LogCap, a last mile logistics platform in Oslo with a gross asset value of €442 mln.
Under the deal, the LogCap portfolio is being sold to a newly established company organized by Arctic Securities and OroEiendom for NOK 3.3 bn (€350 mln). Partners Group will be the largest shareholder in the new company with a 50% stake.
The portfolio, which was put together in 2020 by OroEiendom and Colliers, is comprised of 19 assets strategically located in the Drammen-Langhus-Lillestrøm logistics triangle, which is considered the most attractive area for last mile logistics assets in Oslo.
It has over 100 tenants from a range of industries, which provides strong diversified cashflows and insight into demand dynamics. It is 96% occupied and the average remaining contract period is 4.9 years with 100% annual inflation adjustment leases.
Partners Group will work with LogCap on a value creation plan and seek to expand the portfolio to over €1 bn in size. LogCap said that it has already identified a strong pipeline of potential add-on targets. In addition, Partners Group will also look to enhance the ESG credentials of underlying assets in line with its commitment to stakeholder impact.
The bulk of the portfolio consists of 150,000 m2 with logistics, warehouse, and combination buildings.
Anne-Jan Jager, managing director, Private Real Estate Europe, Partners Group, said: ‘We have been tracking the logistics sector in Norway for some time through our thematic investing approach and following LogCap’s development since early 2021. We plan to capitalize on strong occupier demand and limited new stock to create a leading last mile logistics platform in the country. This investment in LogCap is a great starting point as it provides instant access to scale, vertical depth, and sourcing capabilities in the capital.’
Anders Brustad-Nilsen, Chief Executive Officer, ORO, adds: ‘We are very excited to welcome Partners Group as the largest investor in LogCap. The firm's extensive expertise in the sector will be very valuable as we look to scale our existing logistics platform around the greater Oslo area.’
Pangea Property Partners as financial advisor for LogCap. Arctic Securities structured the acquisition of the LogCap platform, with Advokatfirmaet Schjødt as legal advisor. Kirkland & Ellis, Thommessen, and PwC advised Partners Group. DnB is providing the debt financing for the transaction.
