Kennedy Wilson and Singapore’s sovereign wealth fund GIC have formed a joint venture to buy last-mile urban logistics assets across the UK, targeting the formation of a $1bn (£730m) portfolio.
The jv will be seeded with 18 UK properties currently owned by Kennedy Wilson and valued at $220m, and it could expand into Ireland and Spain.
GIC will own 80% of the jv, while Kennedy Wilson will have a 20% stake and be responsible for the sourcing, buying and managing the assets.
“The logistics sector continues to be a long-term area of focus for GIC,” said Lee Kok Sun, chief investment officer of real estate at GIC.
“We believe the urban logistics sub-market will benefit from positive fundamentals, due to increasing occupier demand driven by accelerating e-commerce adoption and changing supply chain management strategies.
“The joint venture’s focused strategy, with the management of a skilled partner such as Kennedy Wilson, is well-placed to capitalise on these trends and generate resilient returns in the long run. This partnership is part of GIC’s broader strategy to invest in this sector.”
Kennedy Wilson president Mary Ricks added: “We have witnessed the rapid growth of urban logistics properties driven by strong demand from businesses looking to grow their distribution networks with limited supply of space across major cities in our target markets.
“Over the last five years, we have significantly grown our footprint in this asset class. We are thrilled to partner with a preeminent global long-term investor like GIC to further capitalise on the exciting opportunities in this sector and to build out a premier urban logistics portfolio.”
To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
