ICG Real Estate, the real estate division of ICG, has formed Metropolitan Last Mile (Metropolitan), its distribution and industrial platform focused on major urban population centres across the UK, France, and Germany.
Over the last nine months, Metropolitan has acquired 35 assets across the UK, France and Germany through 8 separate transactions, with a total gross asset value in excess of €500m.
Approximately 65% of Metropolitan’s assets are located in London, Paris, and Berlin, cities with significant supply and demand tension and demonstrable rental growth potential. The portfolio is fully let and offers significant value creation opportunities through densification and rental reversion through active asset management.
The platform has a strategic growth plan to expand to over €1.5bn within the next 18 months, with a strong pipeline already identified across key target markets.
Krysto Nikolic, Global Head of ICG Real Estate, commented: “We are delighted to announce the formation of Metropolitan Last Mile which will continue to acquire high-quality distribution and industrial assets in some of the strongest, undersupplied European markets. In the past six months we have taken advantage of the significant dislocation and repricing in European logistics markets to assemble the existing portfolio, under the radar and at very attractive prices. As markets continue to be unstable, we anticipate that our “special situations” approach to the sector will allow us to access value in an asset class that continues to have very robust demand and supply fundamentals.”
Adam Golebiowski, Managing Director, Co-Portfolio Manager of ICG REO, commented: “We are happy to have received the backing of some of the leading global investors to create Metropolitan Last Mile. Our pipeline is highly promising, particularly in the current repriced environment, presenting excellent investment opportunities. We are confident that Metropolitan Last Mile will establish itself as a benchmark European platform for urban distribution and industrial assets.”
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