M&G and TPG create £700m logistics jv
M&G Real Estate and TPG Real Estate have teamed up on a £700m logistics joint venture.
The Active Growth Logistics Partnership, created by M&G for its £129bn With Profits Fund, comprises 6m sq ft of industrial and logistics space let to 630 businesses.
TPG will buy a 50% equity stake in AGLP, with M&G retaining the remaining 50% and continuing as asset manager on the portfolio.
M&G Real Estate and TPG Real Estate have teamed up on a £700m logistics joint venture.
The Active Growth Logistics Partnership, created by M&G for its £129bn With Profits Fund, comprises 6m sq ft of industrial and logistics space let to 630 businesses.
TPG will buy a 50% equity stake in AGLP, with M&G retaining the remaining 50% and continuing as asset manager on the portfolio.
The pair plan to drive further growth across the portfolio, starting with a £53m capital expenditure programme to strengthen asset quality and sustainability.
Martin Towns, deputy global head of M&G Real Estate, said: “Backed by the firepower of M&G’s With Profits Fund, aligned with our extensive capability in the UK market, we have built a platform of significant scale with a highly diverse and defensive income stream that is difficult to replicate.
“Together with TPG we plan to actively evolve the portfolio, investing in the assets to ensure we continue to meet the needs of today’s occupiers. We are at a really interesting point in the cycle as we continue to expand our capabilities beyond core real estate.”
James Piper, partner at TPG Real Estate, added: “This strategic joint venture represents our latest investment into European industrial real estate and leverages our strong track record and experience in the sector. It also reflects our ability to partner with existing owners as a path to investing in high-quality, scaled portfolios in markets that continue to experience strong demand for logistics space.”
