IO Asset Management has launched a new multilet industrial property segregated mandate with Tesco Pension Fund.
IO’s strategy for the TPF mandate is to buy and hold multi-tenanted industrial and urban logistics estates with the aim of maximising income and capital value.
The venture has circa £60m to deploy and will focus on lot sizes of £2m-£10m across the UK.
Angus Scott-Brown, managing director of IO, said: “The TPF mandate has been established to capitalise on the opportunity to generate strong returns by acquiring multilet industrial estates, actively managing these through cost-effective refurbishment to reduce vacancy and generate a defensive and growing distributable income return for the investor.”
Katherine Parker, senior property fund manager at TPF, said: “We are delighted to be working with IO, whose specialist focus and skill base in driving strong income and capital growth from the industrial sector is complementary to our direct property investment strategy.”
Established in 1986 as Industrial Ownership, IO is headed by managing director and founding partner Angus Scott-Brown and chaired by David Hunter.
IO pioneered the proactive management of multilet industrial estates, providing cheaper occupational costs for small and medium-sized businesses and market-beating returns for investors.
It manages a number of private investment vehicles on behalf of well-established investors, including Grosvenor, Quilvest SA, The Earl of Bradford’s Estate and a Hong Kong-based private family office.
Tesco Pension Investment is the in-house investment team created by the Trustee of the Tesco Pension Scheme.
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