Oryx Real Estate Partners has finalised its debut UK logistics development fund, closing above €115m in investable capital from global institutions. The inaugural fund signals investor confidence in repriced UK industrial real estate and strong income growth potential post-market correction.
Despite a challenging fundraising environment, Oryx has secured backing from two cornerstone investors committing to a strategy focused on four to five selective logistics developments. The firm will target sites of up to 15 acres (~?60,700?m²), capitalising on constrained supply and undersupplied submarkets where demand from e?commerce and nearshoring occupiers remains buoyant.
“This is one of the most compelling investment windows we have witnessed in the UK commercial real estate sector since the global financial crisis, and we believe we can offer international investors something different to other managers out there. Crucially we have created a vehicle that can benefit from both periods of stability and volatility in the investment cycle. Closing this fund in the current climate is a clear endorsement of our strategy and vision and the strong relationships we have with our clients,” said Johan Eriksson, Managing Partner at Oryx.
“Following the correction in land values over the past years and the continued potential for rental growth, the UK industrial and logistics sector remains one of our high-conviction sectors. Stabilising construction costs and interest rates support the delivery of healthy returns, and motivated sellers and developers have enabled us to secure a strong pipeline of assets. More broadly, the UK market offers superior liquidity, more defensive valuations, and greater economic resilience relative to other geographies,” added Fawaz AlRajhi, Chairman of Oryx.
Institutional investors and developers will find particular appeal in the fund’s tight focus on Grade A, energy?efficient logistics developments in locations with strong infrastructure and access to labour. This aligns with growing ESG expectations and the increasing value attributed to sustainable, flexible logistics assets.
People mentioned:
Johan Eriksson – Managing Partner, Oryx Real Estate Partners
Fawaz AlRajhi – Chairman, Oryx Real Estate Partners
Companies mentioned:
Oryx Real Estate Partners – Investment adviser and asset manager specialising in UK logistics development
