UK industrial property company io Group has announced the first closing of its European Industrial Partnership (¬IP) fund.
The fund, which is co-sponsored by Axa Real Estate Managers has raised ¬220m (£135.3m), which will be geared to fund an investment programme of up to ¬550m (£338.5m). International investors include PGGM, KPN Pension Fund and the Goverment of Singapore Investment Corporation.
The fund will buy income producing industrial estates which will be branded under the company’s io system. This consists of offering units within multi-let industrial estates on flexible terms. The fund will also undertake development.
The io Group will acquire some of its stock through its local joint venture partners in Paris, Amsterdam and Berlin – Gvio, io Netherlands and GMBH respectively.
John Sims, chief executive of io Group, said: “The commencing investment programme is very much a first phase of the total plan to consolidate and co-ordinate what is currently a localised and fragmented market for our character of property in Europe.”
He added: “We see an expansion of ¬IP occurring after this initial placement of funds, which will provide UK institutions with a natural access to indirect exposure to this market.”
EGi News 19/07/01
