NW1 Partners and Marchmont have raised £100m to invest into the urban industrial logistics market.
Through the vehicle NW1 Partners/Marchmont UK “Last Mile” Logistics Venture, the duo will aim to buy properties ranging from £3m to £10m in Greater London and other key UK cities.
The companies said they will “seek to take advantage of the growing demand for small cap, urban industrial assets by occupiers driven primarily due to the strength of the e-commerce and third-party logistics markets – and the impact this growth places on all traditional urban industrial businesses”.
They have so far bought three properties in Greater London.
NW1, which is backed by Delancey, has partnered exclusively with Marchmont, an urban industrial specialist, on the venture.
Marchmont is acting as the venture’s dedicated local operating partner to source opportunities and execute on the day-to-day business and asset management plans of the individual assets. NW1 is acting as the investment adviser to the venture and is responsible for approving all major real estate decisions.
David Boyle, managing partner at NW1, said: “We are very pleased to be working with such high-calibre partners. We believe there is significant opportunity in the UK urban industrial space and are excited to be executing upon opportunities in this market with Marchmont. Building institutional grade portfolios through focused, regionalised investment strategies is part of our wider NW1 approach, so this latest venture represents continuation of our business plan.”
Tim Lumsdon, founding partner at Marchmont, said: “Having transacted extensively in the UK urban logistics market to date, we view this programmatic partnership with NW1 Partners as the next, exciting step in the evolution of our business.”
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