- The new GLI platform sits alongside PATRIZIA’s TransEuropean VII fund as a sidecar and launches with a circa EUR 240 million seed portfolio and aims to invest a further EUR 750 million in assets on behalf of its institutional clients
- Combined with the new sidecar, PATRIZIA’s flagship value-add TEP VII fund has total firepower of EUR 2.7 billion
Augsburg / London, 18 November 2021. PATRIZIA AG, a leading partner for global real assets, announces the final close of its GLI platform (“the Platform”), a London urban logistics sidecar investment to its flagship discretionary value add fund, TransEuropean Property VII LP (“TEP VII” or “the Fund”), with a further EUR 750 million to invest.
The Platform, which will be operated by PATRIZIA, on behalf of its institutional clients, is structured as a joint venture (“the JV”) with KSP, a specialist in the logistics asset class and last mile submarket who will act as local operating and development partner.
TEP VII GLI aims to assemble a circa EUR 1 billion portfolio of prime last-mile logistics properties in strategic locations in Greater London. These will include zones underpinned by the e-commerce mega-trend, as well as areas attracting growing occupier interest such as dark kitchens and data centres. The JV will seek to re-develop dated, and in some cases obsolete properties, typically involving ground-up development to Grade A standards in line with the highest sustainability credentials.
TEP VII GLI is targeting submarkets that are characterised by limited supply, low vacancy rates and growing demand that has been bolstered by e-commerce as the focus shifts from last mile to ‘last hour’ logistics. The Platform has already assembled a GBP 200 million seed portfolio of four sites in the Greater London area, including Park Royal, Croydon and Mitcham.
Paul Hampton, Chairman of the TransEuropean Property series at PATRIZIA, commented: “With this Platform, we now have the firepower to target one of the most exciting and rapidly growing segments of the European real assets market. The pressure for last mile delivery is only expected to grow over the near term and as the gig economy continues to expand, we also expect increasing demand from dark kitchens, data centres and the like. Many of these groups need real estate close to densely populated areas, which is in short supply.”
“The popularity of the Platform with investors is testament not only to our strategy but the faith our clients have in the operating partnership between PATRIZIA and KSP. Working alongside our local partner, we are excited about the opportunity to create value together and build a portfolio of truly firstclass assets in the coming years. Given the trends underpinning this strategy are pan-European, we may look to replicate this approach elsewhere in Europe in the future.”
David Johnson, Chief Executive Officer at KSP, said: “The London industrial and logistics market is thriving. Our team has significant experience in the sector and a strong understanding of the needs of 21st century businesses. We are pleased to be working with PATRIZIA to deliver much-needed industrial space that supports the demands of modern society, both in terms of last mile logistics and sustainability credentials.”
Including this sidecar, TEP VII reached a total equity raise of circa EUR 1.1 billion, providing the Fund with EUR 2.7 billion of investment firepower. Around 60% of capital has been committed since the final close and the Fund’s swelling pipeline of investment opportunities will ensure that it is fully deployed over the next 18 months.
The TEP series of funds was first launched in 1992 and has invested over EUR 2.8 billion in 13 European countries. Since 2009, the current fund team has generated a 24.1% IRR pa*. The latest TEP VI disposals comprise two Berlin office assets, which means just under 30% of the TEP VI portfolio has now been realised, taking the Fund’s combined realised IRR to 48% per annum and delivering an equity multiple of 3.4x to date.
PATRIZIA: A leading partner for global real assets
As a company with operations around the world, PATRIZIA has been offering investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 37 years. PATRIZIA manages more than EUR 48 billion in assets and employs over 800 professionals at 24 locations worldwide. PATRIZIA has been impact investing since 1984. Since its inception and through the PATRIZIA Foundation, PATRIZIA is committed to social responsibility. The Foundation has helped around 250,000 children in need worldwide gain access to education and thus, has given them the chance of a better life over the last 21 years. You can find further information at www.patrizia.ag
KSP (Kingston Space Property Ltd) is a London based asset manager and developer with a significant track record in both industrial and commercial property, and a core focus on delivering the highest standards of sustainability across their projects. www.ksp.london
Phone: +49 821 50910 628
* Realised property / investment level returns quoted after leverage and capital gain tax but before fees, corporate costs and income tax