Pictet Alternative Advisors and Marchmont Investment Management have acquired, through their UK urban logistics JV, The Titan portfolio of 16 industrial and logistics assets for around £132 mln (€154 mln) from mandates managed by AEW UK Investment Management.
The portfolio comprises nearly 1.8 million ft2 of space across the UK, substantially let on a combination of short-term leases, providing asset management opportunities, and longer term tenancies, secured against strong covenants.
The geographical spread provides exposure to the UK’s best established and supply constrained markets, predominantly in the South East, Midlands and North West of England, according to the JV.
Charlie Baigler, head of acquisitions at Pictet Alternative Advisors, said: 'This portfolio adds significant scale, income diversification and asset management upside potential in Europe’s most developed e-commerce market.
'The JV plans to significantly enhance the portfolio’s ESG credentials and capture reversionary growth, supported by the robust supply and demand dynamics.'
The JV said that the portfolio is entirely aligned with the venture’s strategy to aggregate a balanced portfolio in the urban logistics sector, with a gross asset value in excess of £200m.
Tim Lumsdon, director of Marchmont commented: 'With over 130 tenancies, the portfolio presents a real opportunity to add value through pro-actively managing and improving the existing income stream.
'Furthermore, with average rents of less than £5.00 per ft2, we consider the portfolio to be well placed to benefit from the continued rental growth in the sector.'
Commenting on the sale, Richard Tanner, managing director at AEW UK Investment Management, said: 'We are extremely pleased to have completed the sale of a considerable portfolio of industrial assets on behalf of three AEW-managed funds for £132 mln.
'For a large number of properties the sale crystallises attractive returns for our investors over the last 5 to 10 years. The proceeds will be reinvested in extending and improving existing holdings, and investing in urban properties in the middle of our biggest cities and economically prosperous locations.'