Europa Capital has announced the launch of the British Light Industrial Platform for its latest value add fund, with a €30.7m (£27m) seed portfolio of three industrial assets, which have been assembled through individual transactions. The investment programme is being undertaken with Seven Dials, who will act as the Platform’s asset manager.
The Platform, which will target in excess of €113.6m (£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 is 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. 180,000ft² of space, which is 88% occupied with a WAULT of 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, commented: “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.”
Darren Fennel, Director at Seven Dials, noted: “We continue to focus on assets around London, which we believe will be the focal point during the recovery from the pandemic, as well as other major conurbations. Additionally, we have targeted properties that have low site coverage and units that are well placed to meet the requirements of e-commerce and distribution occupiers.”