Arrow Capital Partners to invest €2bn in European logistics

Arrow Capital Partners to invest €2bn in European logistics

Arrow Capital Partners has partnered with one of the leading North American private equity investors in Europe to acquire a €2bn European industrial and urban logistics portfolio. The Strategic Industrial Real Estate (SIRE) will invest in core-plus industrial and logistics assets yielding more than 5% as well as vacant assets with strong lease-up potential. It will focus on urban infill locations across Europe’s major cities and strategic transport hubs that are benefitting from structural trends in urbanisation and e-commerce growth. 

 

The joint venture will be led by Katherine Parker, Partner at Arrow Capital Partners, and will invest across Europe, predominantly in Germany, Benelux, UK, Italy and Spain, as well as in the Nordics, France and Central Europe. Seeking exposure to single and multi-let industrial, distribution warehouses, ‘last touch’ logistics, cross-docking, trade counter and storage space, the joint venture will acquire properties in locations within urban conurbations, ports, railways, airports.

 

Martyn McCarthy, Managing Partner of Arrow Capital Partners, said: “With SIRE, we are aiming to create value by acquiring and aggregating single assets ranging from €5m to €100m and portfolios between €10m to €500m, that have strong income reversion in markets where the supply/demand dynamics support above-average rental growth, and where targeted CAPEX will enhance the assets attraction to tenants and improve occupancy. We’re already in exclusivity on seven acquisitions totalling €130m across four countries and have an extensive pipeline of opportunities we are progressing, including partnering with local developers who seek a long-term capital partner in their projects to help deliver their local pipelines.”

 

Christian Bearman, Partner and Head of Europe at Arrow Capital Partners, said: “As an investor and operator in real estate, we have flexibility around the type of acquisitions we can target. For example, we have a longer-term investment horizon than most funds and we can continue to work with incumbent asset managers who seek an alternative capital partner to own the assets but wish to still retain the asset management responsibilities for the portfolio. Since launch, we’ve established a track record of deploying capital on behalf of a range of international partners including private equity and family offices in Europe and Australia.”

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