Crosstree Real Estate Partners and Bloom have kicked off a new c. €238m last-mile, industrial and logistics joint venture with the acquisition of a multi-let industrial estate in west London.
The joint venture has been created to invest in underinvested assets in supply-constrained submarkets that can be enhanced to grade-A quality with enhanced sustainability credentials. The geographical focus will initially be in London and the southeast, but will likely expand to regional cities that have similarly attractive supply-demand dynamics.
The first investment is Fairview Business Centre, a prime, highly reversionary multi-let industrial estate in Hayes that
Bloom, led by co-founders Sam McGirr and Tom Davies, will manage the Crosstree last mile joint venture alongside its existing c. €297.5m ultra-urban warehouse joint venture with TPG Angelo Gordon, which has invested in seven assets in central London through a mix of refurbishment and ground-up development projects.
Liam Singh, Managing Director at Crosstree Real Estate Partners, said: ”We are thrilled to have partnered with the experienced team at Bloom as we seek to take advantage of the attractive investment environment in the UK last-mile logistics sector which continues to demonstrate highly compelling fundamentals. Fairview Business Centre represents a strong first investment for the venture, and we look forward to bringing forward our plans whilst seeking further similar investment opportunities.”
Tom Davies, co-founder and managing partner of Bloom, said: “We are delighted to partner with Crosstree on this new joint venture which expands our brown-to-green urban logistics strategy, repositioning underinvested properties into modern, fit-for-purpose warehouses, suitable for a diverse customer pool. We believe the current environment provides an excellent buying opportunity, with industrial property values having appeared to have bottomed out and now trending upward, and with investor sentiment having improved, as inflation and the cost of capital have reduced.”
Sam McGirr, co-founder and managing partner of Bloom, said: “Fairview is a fantastic first asset for the joint venture. We have acquired it at below replacement cost. It is superbly located within a large regeneration area, where industrial property is being redeveloped into residential, leading to an undersupply of good quality industrial and logistics space. It is well let with a strong and diverse tenant base but also gives us the opportunity to improve its quality through a refurbishment and installation of sustainable products such as solar panels and EV chargers.”
Bloom was advised by Rothschild & Co on the joint venture equity raise. Bloom and Crosstree were advised by Fidu Property on the acquisition and A2 Dominion was advised by CBRE.
Written by Leon Goldwater for Europe Real Estate.
Europe Real Estate — an overview of real estate developments in European countries.
