Vancouver-headquartered QuadReal Property Group has formed a joint venture with Valor Real Estate Partners, the specialist logistics company headed by Christian Jamison (pictured), which aims to invest €1 billion in urban logistics assets located in key UK, French and German cities.
QuadReal, which owns and and manages over 75 million sq ft of industrial buildings across North America, Europe and Asia Pacific, will be the majority investor in the JV. The JV will have initial capital commitments of €440 million. With leverage, it said in a statement that this will provide more than €1 billion of capital to invest.
Valor will be responsible for sourcing and managing the portfolio, and in the last four years has itself created a portfolio of 75 urban logistics assets in Europe worth about €1 billion and with floor space totalling 6 million sq ft. Valor points out that its assets are primarily located in the highest barrier-to-entry markets of London and Paris.
The JV’s strategy will be “value-add and develop to hold” and will primarily focus on last-mile logistics assets located in the greater metropolitan areas of London, Paris and Berlin. There will be a secondary focus on major UK and EU gateway cities, such as Manchester, Lyon and Frankfurt.
JV will acquire across the risk spectrum
The JV is mandated to acquire properties across the risk spectrum, including stabilised assets, vacant or short income assets with significant repositioning potential, as well as ground-up development sites.
“The strategically important European urban, infill market continues to offer significant opportunities for nimble and fully-integrated managers to generate attractive risk-adjusted returns. There remains a critical shortage of warehouse space in major metropolitan areas close to the necessary infrastructure to meet occupiers’ requirements, an imbalance that is growing as a result of both near term drivers, such as Covid-19, as well as long term drivers, such as urbanisation,” said Valor managing partner Christian Jamison.
QuadReal Property Group manages the real estate and mortgage programs of British Columbia Investment Management Corporation (BCI), one of Canada’s largest asset managers with a $171.3 billion portfolio. QuadReal manages a $44.2 billion portfolio spanning 23 global cities across 17 countries.