18 January 2021

NW1 partners and marchmont complete first realisation of portfolio roll-up strategy with sale of £50.8 million uk last mile logistics portfolio


NW1 Partners (“NW1”), the highly selective and niche focused value-add real estate investment management firm, announces that it has completed the sale of its £50.8 million UK last mile logistics portfolio to InfraRed Urban Logistics Income Fund (“IULIF”), managed by InfraRed Capital Partners Limited (“InfraRed”). The 261,000 sq ft portfolio comprises eight urban industrial assets predominately located in Greater London and the South East, with two assets in Manchester and Birmingham.

Initially launched in September 2018, with Marchmont Investment Management (“Marchmont”) who acted as the local operating partner, a portfolio was assembled in line with NW1’s small-to-mid cap aggregation strategy, which is focused on a portfolio roll-up approach targeting niche opportunities in markets with compelling local supply and demand fundamentals. The proceeds of the sale mean that NW1 will have outperformed its opportunistic return target whilst utilising core-like leverage to deliver very attractive risk-adjusted returns.

Commenting, David Boyle, Managing Partner, NW1 Partners, said: “Having identified the attractiveness of the last mile logistics market, we worked alongside our local operating partner Marchmont to build a portfolio of small cap assets. Having amassed a quality portfolio of assets in strong urban locations whilst watching the last mile thesis unfold, we are pleased to have now secured an opportunity to deliver very attractive risk-adjusted returns for our client with the disposal of this portfolio.”

Tim Lumsdon, Director, Marchmont Investment Management added: “We are delighted to have successfully concluded our first venture with NW1 Partners. Having identified the opportunity to aggregate assets in the UK urban logistics sector and added value to the portfolio through a pro-active approach to asset management, we are pleased to have concluded the sale to InfraRed. The deal reflects our firm belief that the fundamentals of this sector provide a robust platform for investment performance.”

NW1 and Marchmont were advised by DTRE, Jones Day, Osborne Clarke and Malcolm Hollis.

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Dido Laurimore / Sarah Hebburn / Methuselah Tanyanyiwa