Valor Real Estate Partners has launched its second venture, Valor Industrial Partners 2 (VIP2), with AIG Global Real Estate, which is comprised of a group of international companies within the global insurance organization AIG, as well as a further acquisition for the vehicle in the United Kingdom.
VIP2 will continue to pursue a value-add strategy similar to its predecessor, VIP1, investing in and selectively developing logistics and industrial real estate in the United Kingdom and Continental Europe. VIP2 will have more than £300 million ($404 million) of purchasing power including leverage.
In addition, Valor has acquired as part of the vehicle three modern warehouse units in Dartford, East London, totaling 135,000 square feet. The site benefits from excellent connectivity to Central and Greater London, via the A2 and M25, and provides direct access to the densely populated East London area. The transaction takes the value of Valor’s Greater London portfolio to approximately £150 million ($202 million).
“This partnership represents an important component of our global industrial strategy, and complements our existing pan-European activities in the office, industrial, residential and student accommodation sectors,” said Kevin Reid, chief operating officer of AIG Global Real Estate.
Cane Napolitano, principal at Valor, said Dartford sees a continued trend of high rental growth in the U.K. market due to declining volumes of existing stock and increasing demand, particularly from occupiers being squeezed out of submarkets within the M25.