Europa Capital, the pan-European real estate investment manager, and ARC Real Estate Partners announce that they have completed the acquisition of two light-industrial portfolios in the Netherlands on behalf of Europa Capital’s Fund V’s recently launched Dutch Light-Industrial Platform (“DULIP” or the “Platform”), for a total consideration of €35 million.
DULIP, which will be managed by Europa Capital’s local partner ARC Real Estate Partners, has a total investment capacity in excess of €100 million. The Platform will seek to capitalise on the growing occupational demand for light industrial assets, which is being driven by the growth of online retailing and a proliferation of SMEs close to major urban conurbations.
The combined portfolio, comprising 19 properties across six different locations provides a total lettable floor area of 54,000 sqm, is 97% let. The investment provides an opportunity to improve capital values through re-lettings and capital investment. Located in Helmond, Bergen op Zoom, Barneveld, Weesp and Oosterhout, and the Schiphol area, the assets are well placed in the Randstad to benefit from their close proximity to a number of strong transport hubs.
James Fortescue, Partner at Europa Capital, comments: “DULIP has been created to provide institutional investors looking for attractive cash on cash yields with a diverse investment product. There has been a significant drop in the supply of light industrial space in the Netherlands, which has been fuelled by limited development activity, due to rising build costs, and the loss of land to residential development.
Olle van Alphen, Managing Partner at ARC Real Estate Partners notes that “These portfolios are well positioned to benefit from this favourable supply / demand dynamics and we expect to see rental values increase. Our strategy is to actively manage and grow the portfolio, predominantly focusing on the Randstad area, which is one of the most economically important and densely populated areas in Europe.”
DULIP was advised by Dentons for both transactions.
Source : Europa Capital