Valor and QuadReal announce €1bn joint venture

Valor Real Estate Partners and QuadReal Property Group have announced a joint venture to invest €1bn (£901m) in urban logistics assets located in UK, French and German cities.

The joint venture will reportedly focus on “last-mile” logistics assets located in the greater metropolitan areas of London, Paris and Berlin, with a “secondary focus” on major UK and EU gateway cities, such as Manchester, Lyon and Frankfurt.

The sector has benefitted strongly from “accelerating e-commerce growth” in response to changing consumer behaviour.

QuadReal will reportedly be the majority investor with an initial “capital commitments” of €440m (£396m) and said with “leverage”, it will provide in “excess” of €1bn (£901m) of investable capital.

Jay Kwan, managing director Europe, QuadReal, said: “Urban logistics is one of our highest conviction strategies globally.

“Given the e-commerce growth that has accelerated rapidly as a result of Covid-19 and which is forcing businesses of all shapes and sizes to ensure their distribution networks are fit-for-purpose.

“Valor is a fast-growing platform with proven capital deployment capabilities, and this new venture continues our strategy of working with best-in-class real estate partners with exceptional track records of generating strong returns.”

Valor will be responsible for developing in-house and managing “infill logistics” assets, having grown a circa “€1bn pan-european portfolio” of prime urban logistics assets in just four years.

Christian Jamison, managing partner, Valor, said: “There remains a critical shortage of warehouse space and an imbalance that is growing as a result of both near term drivers, such as Covid-19, as well as long term drivers, such as urbanisation.”


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