The real estate division of asset manager ICG has been assembling properties – 35 at the last count – over a nine month period for its Metropolitan Last Mile strategy.
It has executed eight transactions in the UK, France and Germany, it said, with a total gross asset value in excess of €500 mln.
Notably, ICG described the acquisitions as having been made in a ‘repriced market environment’ through off-market and special situations.
Approximately 65% of Metropolitan’s assets are located in London, Paris, and Berlin, cities with significant supply and demand tension and demonstrable rental growth potential, it added.
The portfolio is fully let yet has some opportunities to create value through densification and rental reversion.
The formation of Metropolitan has been spearheaded by ICG Real Estate’s opportunistic team with financial backing from global institutional investors to take advantage of current market dislocation with substantial dry powder.
It wants to triple the size to over €1.5 bn within the next 18 months, with a strong pipeline already identified across key target markets.
Krysto Nikolic, global head of ICG Real Estate, said: ‘In the past six months we have taken advantage of the significant dislocation and repricing in European logistics markets to assemble the existing portfolio, under the radar and at very attractive prices. As markets continue to be unstable, we anticipate that our “special situations” approach to the sector will allow us to access value in an asset class that continues to have very robust demand and supply fundamentals.
Adam Golebiowski, MD, and co-portfolio manager of ICG REO, added: ‘Our pipeline is highly promising, particularly in the current repriced environment, presenting excellent investment opportunities. We are confident that Metropolitan Last Mile will establish itself as a benchmark European platform for urban distribution and industrial assets.’