Europa Capital has announced the launch of the British Light Industrial Platform for its latest value add fund, with a £27m seed portfolio of three industrial assets, which have been assembled through individual transactions.
The Platform, which will target in excess of £100m of GAV over an 18-month period, is focused predominantly on income producing last mile logistics and warehouse investments which provide the opportunity to create value through active asset management, such as refurbishment, re-letting activity and expansion through development.
The Platform has been designed to deliver “attractive returns” for the fund’s investors by capitalising on the positive market trends near major UK cities, where rental growth is underpinned by a reduction in supply and rising demand from the growing e-commerce sector.
The seed portfolio, which is located around London in Sunbury, Amersham and Grays, comprises a total of c. 180,000 sq ft of space, which is 88% occupied with a weighted average unexpired lease term in excess of three years.
The portfolio offers the opportunity for active asset management and refurbishment to grow the rental income, improve capital values and enhance sustainability credentials.
James Fortescue, partner at Europa Capital,said: “The launch of this investment programme builds on our substantial experience in the industrial market, a sector which remains a strategic priority for our investment portfolio.
“This new platform is a planned agglomeration strategy whereby we look to acquire smaller assets, which require active management, and then to improve liquidity further through creating scale.”