Marchmont Investment Management (“Marchmont”) is delighted to have completed the sale of its UK Last Mile Logistics Fund to InfraRed Capital Partners at the end of 2020. It marks an important milestone for Marchmont: completing the full realisation of its 2nd UK Logistics Fund.
Marchmont implemented its Last Mile Logistics strategy with its joint venture partner, NW1 Partners. Together, Marchmont and NW1 aggregated a portfolio of eights assets in strong urban locations – mainly in London and South East with two assets in Manchester and Birmingham. Marchmont were responsible for sourcing assets and implementing the asset management.
NW1 focuses on small-to-mid cap portfolio aggregation strategies and the urban logistics portfolio sale serves to reaffirm the merit of such a strategy. The proceeds of the sale mean that the JV will have outperformed its opportunistic return target whilst utilising core-like leverage to deliver very attractive risk-adjusted returns for its investors in excess of 20% p.a..
Marchmont is an experienced UK real estate investment manager and a specialist in the urban industrial sector. It was founded 2011 by managing director, Tim Lumsdon and is run with two other partners – Cameron Fraser and Julian Perry. Since it was founded, Marchmont have transacted in excess of £450 million of commercial property investments.
Tim Lumsdon, Director of Marchmont Investment Management added, “We are delighted to have successfully concluded our first venture with NW1 Partners. Having identified the opportunity to aggregate assets in the UK urban logistics sector and added value to the portfolio through a pro-active approach to asset management, we are pleased to have concluded the sale to InfraRed Partners. The deal reflects our firm belief that the fundamentals of this sector provide a robust platform for investment performance.”
David Boyle, Managing Partner of NW1 said, “NW1 set out to build a portfolio of small cap assets last mile industrial assets and roll up into a portfolio. Having seen the last mile thesis unfold and build a resilient portfolio of assets in strong urban locations, we are pleased to have sold the portfolio to InfraRed and delivered our small to mid-cap roll up strategy. Marchmont did an outstanding job and we look forward to launching new initiatives with them in the near future.”
Marchmont and NW1 Partners were advised by DTRE, Jones Day, Osborne Clarke and Hollis.