Tritax Management has launched an open-ended real estate fund focused on multi-let industrial estates, last-mile logistics and mid-box clusters in the Greater London area.
The Tritax London Logistics Fund (TLLF), which was formerly Airport Industrial Property Unit Trust (AIPUT), has been seeded with a portfolio of 17 assets providing 2.2m sq ft with a capital value of circa £700m.
The majority of the portfolio is located in the Heathrow and West London areas and the fund’s new strategic direction means it will retain a significant presence in the Heathrow sub-market, while capitalising on the rapid growth of e-commerce-driven last mile across the wider London market. TLLF will invest in industrial and logistics assets, predominantly located in West London and within the M25 orbital road system.
Tritax said that with a projected rental reversion of 39%, the seed portfolio, which also includes three prime development projects in Heathrow and a profit share agreement from a major data centre development, would be able to deliver strong rental and capital growth.
Nick Ireland, fund manager of Tritax London Logistics Fund, said: “London’s fast-growing population and world-leading e-commerce penetration continues to fuel demand for last-mile logistics assets, and industrial real estate supply has not kept up. This creates compelling market fundamentals from an industrial and logistics perspective: through the potential for rental and capital growth, and asset management opportunities to deliver occupier needs.
“We are seizing the opportunity to reshape our previously airport-focused portfolio and offer investors direct access to a wider range of logistics assets in the attractive Greater London market. We’re very excited about the evolution of the fund strategy and structure which should provide the springboard to meaningfully grow the fund over the coming years whilst aiming to deliver compelling returns for investors. We’ve had a busy start to the year with the sale of the Manor Farm site, progressing our development pipeline and commencing our equity raising campaign.”
