Canada's QuadReal Property Group and pan-European urban logistics specialist Valor Real Estate Partners have launched a second JV to invest an additional €3 bn in urban logistics assets located primarily in UK, France and Germany.
The new vehicle’s value-add and development strategy will focus on industrial assets in and close to major metropolitan areas, including 'last mile' logistics.
The additional commitment follows the successful launch of the initial €1 bn JV in November 2020.
In just over twelve months, the majority of the commitment has already been deployed, with the JV completing 22 investments totalling €750 mln gross asset value across 2.5 million ft2 (232,250 m2) and approximately 50 buildings.
The portfolio includes thirteen investments in London, six in Paris, two in Berlin and a single acquisition in Birmingham.
Jay Kwan, managing director Europe, QuadReal, commented: 'QuadReal and Valor launched its venture only one year ago, based on a joint conviction in the urban industrial sector across Europe.
'We have since made a series of successful investments and are now expanding our venture both in terms of size and geography. We are proud to continue our partnership with Valor, one of the first movers with a demonstrable track record in a sector in which others are only beginning to enter.'
QuadReal will commit the majority of the capital for the new vehicle and brings its extensive experience in the sector with a portfolio of 100 million ft2 of industrial and logistics facilities across global markets.
Urban logistics specialist Valor will be responsible for sourcing and managing the portfolio, leveraging its significant experience acquiring, developing in-house and managing infill logistics assets.
Valor was founded in 2016 and in five years has amassed a €2.5 bn portfolio comprising more than 140 infill urban assets, concentrated in the gateway cities of London, Paris and Berlin.
Christian Jamison, managing partner, Valor, commented: 'The critical shortage of warehouse space in major metropolitan areas continues to grow as a result of both near term drivers, such as the current global pandemic, as well as long term drivers, such as e-commerce and urbanisation.
'As a specialist platform comprised of a vertically integrated team of investment and development professionals, we have a proven track record of delivering scale in these supply constrained and highly fragmented markets.
'Our successful partnership with QuadReal demonstrates our ability to close transactions extremely quickly, even where the deals are complex, and we look forward to expanding our portfolio further with this substantial capital commitment to our latest JV.'
