Oryx Real Estate Partners has announced the first and final close of its debut UK logistics development fund.
The fund is backed by two cornerstone institutional investors and has more than £100m of investable capital.
Oryx said it would prioritise opportunities in undersupplied industrial submarkets, employing a development strategy alongside relevant and specialised development partners.
It added that it would identify well-located land plots and develop small to mid-sized sustainable UK logistics properties. Target investments would be sites of up to 15 acres, with or without planning consent, it said, adding that it had already assembled a near-term pipeline of opportunities.
Johan Eriksson, managing partner of Oryx, said: “This is one of the most compelling investment windows we have witnessed in the UK commercial real estate sector since the global financial crisis, and we believe we can offer international investors something different to other managers out there. Crucially we have created a vehicle that can benefit from both periods of stability and volatility in the investment cycle. Closing this fund in the current climate is a clear endorsement of our strategy and vision and the strong relationships we have with our clients.”
Fawaz AlRajhi, chairman of Oryx, added: “Following the correction in land values over the past years and the continued potential for rental growth, the UK industrial and logistics sector remains one of our high conviction sectors. Stabilising construction costs and interest rates support the delivery of healthy returns, and motivated sellers and developers have enabled us to secure a strong pipeline of assets. More broadly, the UK market offers superior liquidity, more defensive valuations, and greater economic resilience relative to other geographies.”
