The joint venture between Pictet Alternative Advisors and Marchmont Investment Management has completed its acquisition of AEW UK’s Titan industrial portfolio for around £132m.
The portfolio comprises nearly 1.8m sq ft across 16 properties, substantially let on a combination of short-term leases and longer-term tenancies to 130 occupiers.
The geographical spread mostly caters to the South East, Midlands and North West of England markets.
The joint venture said it aims to aggregate a balanced portfolio in the urban logistics sector, with a gross asset value in excess of £200m.
Charlie Baigler, head of acquisitions at Pictet Alternative Advisors, said: “This portfolio adds significant scale, income diversification and asset management upside potential in Europe’s most developed e-commerce market.
“The jv plans to significantly enhance the portfolio’s ESG credentials and capture reversionary growth, supported by the robust supply and demand dynamics.”
Tim Lumsdon, director of Marchmont, said: “With over 130 tenancies, the portfolio presents a real opportunity to add value through proactively managing and improving the existing income stream.
“Furthermore, with average rents of less than £5 per sq ft, we consider the portfolio to be well placed to benefit from the continued rental growth in the sector.”
Richard Tanner, managing director at AEW UK Investment Management, said the proceeds would be “reinvested in extending and improving existing holdings, and investing in urban properties in the middle of our biggest cities and economically prosperous locations”.
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