Invesco Real Estate and Marchmont Investment Management (Marchmont IM) have launched Space Industrial, a new platform which will acquire, manage and reposition Multi Let Industrial (MLI) assets in the UK.
Capital for the joint venture from Invesco has been provided from the Invesco Real Estate Europe Fund III – SCSp (Europe III), the third closed-end fund in a series dedicated to pan-European higher returning investments.
Space Industrial will take advantage of strong market fundamentals and target severely under-rented MLI estates in well-located, last-mile locations close to key urban centres. The platform will look to drive income returns through proactive asset management and focus on brown-to-green ESG initiatives to meet the highest possible sustainability criteria.
Space Industrial has acquired four assets across the UK with the intention to continue to invest from its own balance sheet capital and on behalf of other 3rd party capital.
Richard Chambers, Managing Director – Fund Management, Invesco Real Estate, said: “The UK industrial sector continues to offer very attractive investment opportunities on a select basis. Despite the recent market volatility, this sector has remained liquid, with both investors and lenders continuing to show strong appetite. This new venture with Marchmont IM is well positioned to capitalise.”
Jonathan Feldman, Senior Director – Investments, Europe, Invesco Real Estate, commented: “We are delighted to be working with Marchmont IM to seed Space Industrial and build a fully vertically integrated platform structured to scale through a consistent approach that will be recognisable to occupiers, owners, and investors. As a firm, Invesco is focused on working with best-in-class partners in high conviction sectors through structures that create compelling value.”
Tim Lumsdon, CEO, Marchmont IM said: “As an established operating partner in the UK MLI market, the opportunity to work with Invesco to develop and grow a dedicated vertically integrated platform in this sector is an exciting proposition. We consider the combined track record of our businesses presents a compelling partnership to execute in this space.”
Cameron Fraser, CIO, Marchmont IM, added: “The UK MLI market has re-priced more rapidly than others, presenting an opportunity for Space Industrial to invest in high-quality, income-producing MLI real estate, promising strong risk-adjusted returns. The venture will target assets between €19m - €190m and will look to provide capital solutions for Industrial Real estate platforms.”
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