AEW has partnered with Allianz to launch a €290m (£248m) logistics venture to fund speculative developments in the UK.
AEW will manage the venture, an Allianz-owned separate account vehicle, and will focus on units of 200,000 sq ft or larger in prime locations in the UK. Allianz is committing €290m.
Allianz Real Estate, the real estate investment and asset manager of Allianz Group, has increased its exposure to the logistics sector over the past few years. Logistics accounted for €5.6bn of the firm’s total assets under management as at 31 December 2018.
One of the first investors in logistics, AEW created the Logistis platform for Continental Europe back in 1999. Logistis has progressively scaled-up its portfolio to build a prime platform with total value reaching €3.5bn.
This new venture aims to replicate the strategy in the UK, leveraging both AEW’s track record in logistics developments and current market dynamics.
Nick Winsley, head of investments at AEW UK investment management, said: “The timing is right to launch this develop-to-core strategy. In a market where significant pools of capital continue to focus on a limited supply of investment stock or prelet fundings, our strategy is to fund the development of larger buildings on a speculative basis.”
Hugues Branconnier, head of logistics at Allianz Real Estate, added: “With the favourable backdrop of limited availability and increasing tenant demand for larger format warehouses, AEW and Allianz Real Estate have identified a clear opportunity to build a portfolio of core assets in the UK. This new venture reflects Allianz’s focus on working with prime partners such as AEW and diversifying our portfolio with regards to the in-demand logistics sector.”
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