M&G Real Estate and TPG Real Estate have launched a circa £700m strategic joint venture to manage and grow M&G’s Active Growth Logistics Partnership (AGLP).
TPG has acquired a 50% equity stake in AGLP from M&G, with M&G retaining a 50% ownership and remaining as asset manager of the 6m sq ft multi-let industrial portfolio.
M&G and TPG will look to drive further value across the platform and intend to invest £53m to strengthen the quality and sustainability of the assets.
Martin Towns, deputy global head of M&G Real Estate, said: “Backed by the fire power of M&G’s With Profits Fund, aligned with our extensive capability in the UK market, we’ve built a platform of significant scale with a highly diverse and defensive income stream that is difficult to replicate.
“Together with TPG we plan to actively evolve the portfolio, investing in the assets to ensure we continue to meet the needs of today’s occupiers. We are at a really interesting point in the cycle as we continue to expand our capabilities beyond core real estate. We look forward to working with TPG to deliver a diversified and growing income stream for our clients.”
James Piper, partner at TPG Real Estate, added: “This strategic joint venture represents our latest investment into European industrial real estate and leverages our strong track record and experience in the sector. It also reflects our ability to partner with existing owners as a path to investing in high-quality, scaled portfolios in markets that continue to experience strong demand for logistics space. We look forward to working alongside our new partner, M&G, to support and enhance the AGLP platform.”
