Partners Group and ARA Dunedin have formed a joint venture to invest in mid-box logistics and industrial assets located in the UK.
The venture is targeting portfolio GAV of £250 million.
The JV will pursue value-add returns generated through repositioning properties by employing intelligent selection, improving
management, and undertaking strategic capex, said the companies in a joint statment.
The JV plans to focus on assets near major conurbations that need upgrading, extending, or reletting.
The fundamental shift of supply chains has created increased demand for space at a time when new supply is constrained, according to the companies.
Partners Group and ARA Dunedin have also announced the recent acquisition of a seven-property portfolio from Regional REIT PLC. This acquisition will form the initial investment for the joint venture.
The principals of ARA Dunedin possess an industrial and logistics track record spanning 20+ years. During that time, they have acquired and managed over GBP 1.2 billion of industrial and logistics properties, both on their own and in partnership with several investment institutions.
Roun Barry CEO of ARA Dunedin said: “We look forward to working with a new capital partner that shares our view that actively managing real estate adds value. We have a long record of rolling up our sleeves and in a very competitive market we believe this will provide our edge.”
Rahul Ghai, Managing Director, Co-Head Private Real Estate Europe, Partners Group, said: “We are delighted to expand our light industrial footprint in the UK. This sector is seeing high levels of demand due to the rise of e-commerce, a key transformative trend we have been following, yet shrinking supply, which is being caused by competition for land from other real estate segments such as residential.”