Compelling opportunities in the value-add space

Key takeaways for 2026

• Real estate has been in stasis over the previous year 
• Value-add assets can offer attractive, risk-adjusted returns
• Further investment in urban industrial assets expected

How do you assess the sector’s current state as we enter 2026?

The real estate sector has experienced relative stasis over the past 12 months, as investors have again waited on the sidelines following a period of political turbulence both globally and at home, and a weak macro environment. Heading into 2026, indicators are trending better with inflation and interest rates reducing, which should prove positive for real estate.

Patient investors have been waiting for the right opportunities, and sectors supported by strong structural tailwinds – such as urban logistics – look well-positioned to benefit from new capital inflows. We believe we will continue to see compelling opportunities in 2026 in the value-add space, particularly where we can acquire multi-let estates in prime locations with brown-to-green repositioning potential. These assets can offer attractive, risk-adjusted returns to those with the right skill set to unlock the available income and capital upside.

What key transaction or milestone stood out for your business in the past 12 months, and why did it matter?

In March, we launched our brown-to-green urban logistics joint venture with Blue Coast Capital. We created the platform to aggregate a £500 million portfolio, through repositioning multi-let urban logistics investment assets into best-in-class sustainable properties in economically strong and densely populated UK towns and cities.

We’ve already completed several transactions as part of the strategy, demonstrating the quality of the opportunities we are securing in excellent locations where we can unlock significant long-term value. Examples include our purchase of the Tuscam Trading Estate in Camberley, Surrey, for around £40 million.

Subsequently, in June, we acquired the Harp Trading Estate in Trafford Park, Manchester. And in December, we announced the venture had purchased Beckton Trade Park in East London, which reflected an exciting opportunity to acquire a 100,000 sq ft multi-let industrial estate in a core London market that can be quickly repositioned to offer best-in-class sustainable accommodation with reversionary potential. We have an identified pipeline of similarly attractive deals for 2026.

What are the main opportunities and prospects you see for the sector and for your business in 2026?

We see further investment in 2026 in well-located urban industrial assets with the potential for repositioning. As our strategy with Blue Coast Capital suggests, we believe high-quality industrial estates that require value-add strategies – essentially, brown-to-green repositioning to core – continue to look attractive on a risk-adjusted basis.

We also see a significant opportunity in our existing portfolio. We see the benefit of our refurbishment strategies at play as we continue to outperform our business plans and drive performance through the many asset management events. This gives us great conviction and real-time data that our strategy is working.

We will continue asset managing our existing portfolio hard in 2026, making sure we provide modern space that is relevant for our occupiers and for capital markets.

What are your key strategic priorities for the year ahead?

To continue aggregating our portfolio of multi-let UK assets and driving value of our existing assets through our refurbishment and asset management strategies.

Crispin Gandy, Argo Real Estate