Pictet Alternative Advisors acting together with Marchmont Investment Management have acquired a €33.5m development site. This deal marks the closing of the fifth acquisition for the PAA/Marchmont “Last-Mile” Logistics Venture. This purchase follows a flurry of deals for Marchmont including the acquisitions of four single and multi-let estates around Greater London and the South East. The asset, which fronts Fleming Way, will be redeveloped to provide up to 225,000ft² of logistics space.
Charlie Baigler, Head of Acquisitions, Real Estate at Pictet Alternative Advisors, said: “We believe there is a significant opportunity for value creation in the UK urban logistics and industrial space, despite the economic headwinds. The demand drivers, which are principally fuelled by e-commerce penetration, combined with the dwindling supply, particularly in the South-East should maintain upward pressure on rents. To successfully execute this strategy, a high quality, sector specialist JV partner is needed, which is exactly what we have with Marchmont.”
Cam Fraser, Director at Marchmont, says: “We are delighted to have completed on the purchase of this prime development opportunity as part of our strategic drive with Pictet Alternative Advisors. We see Crawley as a key South East market with an under-supply of Grade A quality mid-box units. Marchmont have been very active in the urban industrial space to date and we view this programmatic partnership with Pictet Alternative Advisors as the next, exciting step in the evolution of our business. PAA share our conviction of the fundamentals of this strategy and to partner with an investor of this pedigree is a great partnership."
