Apollo has appointed Valor Real Estate Partners as asset manager for a 230,000 sq m portfolio of European infill logistics assets.
The 24 asset portfolio, which comprises a mix of standalone warehouses and small urban estates, is located across 11 of Europe’s dominant metropolitan centres.
The tenant base comprises a diversified mix of e-commerce operators, third-party logistics providers, parcel delivery firms and light industrial occupiers.
Valor will undertake a phased sustainability-led refurbishment and redevelopment programme across some of the assets to meet the growing demand for high quality, last-mile distribution facilities.
Christian Jamison, CEO and managing partner at Valor, said: “This landmark appointment by a leading global investor is another strong endorsement of the operating model we have built and our ability to unlock value in what is one of real estate’s most structurally supported sectors. In under four years we have doubled our assets under management to over €5bn, a remarkable achievement in what remains a very granular and high-barrier-to-entry sector, and testament to the quality of our team.
Brad Stitchberry, partner and head of asset management at Valor, added: “This is a standout pan-European last-mile logistics portfolio by location and tenant quality, offering a rare combination of stable day one income and significant reversion. The structural growth, driven by e-commerce, coupled with an increasingly acute undersupply of ESG-compliant space that can facilitate the time-critical distribution demands of occupiers, is underpinning its attractive rental and capital growth prospects.”
Frederick Neske, partner at Apollo, said: “Urban logistics remains one of our high conviction investment themes across Europe. Consolidating the management of this portfolio with Valor is the next step of our business plan, as we seek to deliver excess return per unit of risk and execute on a long-term hold strategy in a higher-for-longer rate environment.”
Ben Allmond, principal at Apollo, added: “Urban logistics continues to benefit from stable cash flows, optionality and supply constraints that support rental outperformance in a higher rate environment. We are pleased to work with Valor to actively manage this portfolio and capture the embedded positive reversion as it enters the next stage of its value creation cycle.”
