Aberdeen Standard Investments (ASI) is to acquire a 60% interest in logistics specialist Tritax to strengthen the combined offering in the growing logistics real estate market, the company said Wednesday in a statement.
Tritax is a specialist logistics real estate fund manager with assets under management of approximately £5.1 bn (€5.66 bn) throughout the UK and Europe. It has significant expertise within the logistics sector, from large warehouses occupied by major online retailers through to ‘last mile’. Among its mandates, Tritax manages two of Europe’s leading listed industrial logistics funds, Tritax Big Box REIT and Tritax EuroBox.
Tritax said that ‘working with ASI will provide opportunities for existing clients and support its long-term growth objectives across logistics real estate’. ASI is already active in the logistics sector and has its own listed logistics fund, Aberdeen Standard European Logistics Income.
Following the transaction, Tritax’s dedicated teams will continue to service their existing mandates, including listed companies Tritax Big Box REIT and Tritax EuroBox. Tritax’s management will lead ASI Real Estate’s Global Logistics Team and will report to the Global head of Real Estate, Neil Slater.
The transaction is expected to close in early 2021, subject to the receipt of regulatory approvals and satisfaction of customary closing conditions. The terms of the transaction are not disclosed.
‘Logistics is, and will remain, one of the most attractive income and capital growth sectors within real estate over the long term,’ said Neil Slater, global head of Real Estate and Deputy Head of Private Markets, Aberdeen Standard Investments. ‘The ongoing impact of technological developments, the effect on supply chain management and, ultimately, the increasing customer demand for control over the delivery of goods and services makes this transaction a scalable and exciting opportunity. Importantly, it provides the potential to grow and further diversify future earnings through greater investment capability and expertise, scale and credibility in this sector.
“This transaction reiterates our commitment to evolve our real estate offering to ensure it develops with changing industry dynamics and client needs. I have a great deal of respect for Tritax and its achievements. We look forward to working with our new colleagues.’
ASI was advised by Macfarlanes. Tritax was advised by Berkshire Global Advisors and Ashurst.
The transaction is the latest move by a global investment management to increase exposure to logistics through a partnership with a sector specialist. Earlier this week, Oxford Properties, the property arm of Canada's OMERS pension fund, emerged as the potential buyer of European property fund manager M7. Set up in 2009 by chief executive and now executive chairman Richard Croft, M7 manages over 830 assets comprising 66 million ft2 valued at €5 bn on behalf of real estate investors such as Blackstone, Centerbridge, M&G and HIG Capital.
Similarly, Singapore’s GIC is believed to be buying out Morgan Stanley in the €2 bn Irish logistics platform known as Exeter Property Group. The equity position in the 1.3 million sq ft logistics platform is believed to be valued €200 mln.