Grosvenor is backing a multi-let industrial property investment vehicle targetting a £120m investment along with property manager IO and private equity firm Quilvest.
IO will manage the vehicle, which follows a £35m investment programme that IO launched with Grosvenor in January 2013, and which saw the purchase of 14 estates.
IO managing director Angus Scott-Brown said: “The new vehicle provides a compelling opportunity for two international property investors to access the specialist management skills required in the multi-let industrial sector.
“For our first venture with Grosvenor in 2013 we spotted the opportunity to generate strong returns by acquiring multi-let industrial estates at relatively high yields and growth. Now, with the gap between yields and the cost of capital still attractive, it is the limited supply and lack of new development that suggests a strong period of rental value growth”.
Quilvest chief executive Guy Zarzavatdjian said: “This is also the chance to build upon a common understanding of the opportunity to invest in the UK industrial property sector. We therefore consider this investment as an appropriate response to a rather volatile investment space. It also is in line with our ambition to continue developing similar unique partnerships across European key markets”.
