Tritax Management has rolled out the London Logistics Fund, an open-ended real estate investment vehicle focused on industrial buildings across the UK capital.
The initial portfolio, valued around £700m, spans 17 facilities totalling 2.2m sq ft, 90% of which are in the Heathrow and West London areas. The ambition is to double to fund to £1.5bn over the next three years through its development pipeline, equity raising and capital recycling from non-core asset disposals.
The newly launched fund will replace the Airport Industrial Property Unit Trust that Tritax bought from Aberdeen in July 2023. It will continue to be headed by fund manager Nick Ireland.
The move comes as Tritax is set to take a step back from its previous airport-centric focus to target prime locations around west London and within the M25 where e-commerce penetration has been strong, particularly in last-mile logistics.
Ireland said: “London’s fast-growing population and e-commerce penetration continues to fuel demand for last-mile logistics assets, and industrial real estate supply has not kept up. This creates compelling market fundamentals from an industrial and logistics perspective: through the potential for rental and capital growth, and asset management opportunities to deliver occupier needs.
“We are seizing the opportunity to reshape our previously airport-focused portfolio and offer investors direct access to a wider range of logistics assets in the attractive Greater London market.”
Image Nick Ireland @ Tritax
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