Valor seeks to double UK portfolio to £2bn in regional growth drive
Urban logistics platform Valor Real Estate Partners is planning to double the size of its UK portfolio to around £2bn, with Birmingham, Manchester and Leeds identified as core target cities for growth.
Valor, which has amassed a circa £1bn UK portfolio, mainly concentrated in London, is aiming to deploy a significant portion of its existing £1bn investment vehicle into the three regional cities as well as continuing its expansion in the capital.
It has completed its first deal in Birmingham as part of this strategy, buying 51,055 sq ft urban logistics facility Oscar House from Vengrove. The property sits on a 3.7-acre plot in Tyseley.
Urban logistics platform Valor Real Estate Partners is planning to double the size of its UK portfolio to around £2bn, with Birmingham, Manchester and Leeds identified as core target cities for growth.
Valor, which has amassed a circa £1bn UK portfolio, mainly concentrated in London, is aiming to deploy a significant portion of its existing £1bn investment vehicle into the three regional cities as well as continuing its expansion in the capital.
It has completed its first deal in Birmingham as part of this strategy, buying 51,055 sq ft urban logistics facility Oscar House from Vengrove. The property sits on a 3.7-acre plot in Tyseley.
The platform, which has some €2bn (£1.7bn) of assets under management, seeks to reposition the vacant building to cater to nationwide parcel distributors and last-mile logistics operators.
Cane Napolitano, partner and head of investments at Valor (pictured), said: “While our focus will remain on the dominant European metropolitan hubs of London and Paris, following a period of record take-up and accelerating structural trends caused by the pandemic, we see a compelling investment opportunity in select regional UK city sub-markets.
“Furthermore, with population growth forecast in these target cities over the medium term and e-commerce penetration set to catch up with London, there are strong drivers for sustained rental growth and yield compression. Our highly forensic approach to sourcing and acquiring assets will continue to be a key differentiator in what are increasingly competitive markets.”
Timour Wielemans, an analyst in Valor’s investments team, said: “This acquisition included an additional acre of land located at the rear of the warehouse, creating a low-site-cover unit that will be perfectly positioned to cater to e-commerce and last-mile occupiers delivering goods into Birmingham city centre.”
Valor’s portfolio comprises more than 110 assets totalling 7m sq ft.
Savills advised Valor on the Birmingham deal.
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Photo © Valor Real Estate Partners
