Property investment and development company Kingston Space Property (KSP) has entered into a joint venture with PATRIZIA AG, a leading partner for global real assets, to develop the Greater London Industrial Platform (“TEP VII GLi”).
GLi is an investment platform designed to respond to increasing demand from e-commerce for strategically located last mile and last hour logistics properties. The platform is part of Patrizia’s TransEuropean Property VII fund, and KSP will act as the local operating and development partner.
The GLi platform, a ‘sidecar’ of the TEP VII Fund, has launched with a circa GBP 200 million (EUR 240 million) seed portfolio, comprising four sites in Greater London.
GLi also aims to invest a further GBP 640 million (EUR 750 million) in assets in strategic locations in Greater London, with a focus on local submarkets characterised by limited supply, low vacancy rates and a growing demand for space in response to e-commerce, including the shift towards last hour logistics requirements. The platform will seek to redevelop dated properties from the ground up, delivering Grade A standard accommodation that reflect the highest sustainability credentials.
Facilities in the GLi portfolio are characterised by their energy efficiency, and are 100 percent electric, built on a net zero carbon basis and rated BREEAM Excellent. Their sites also address London’s Ultra Low Emissions Zone by providing 100 percent charging points for electric vehicles. Units are conceived with customer and employee wellbeing considerations, including good daylight and air conditioning plus bicycle storage. Finally, GLi properties are designed to make a positive contribution to urban regeneration and enrich local communities.
As a London based asset manager and developer, KSP has an established track record in sustainability across the capital for both industrial and commercial property and is committed to delivering the highest standards across their projects, including use of photovoltaics and carbon offsetting. In addition, KSP recently achieved planning permission for one of the first all-electric office buildings in West London.
David Johnson, Chief Executive Officer at KSP, said: “The London industrial and logistics market is thriving. Our team has significant experience in the sector and a strong understanding of the needs of 21st century businesses.
“We are pleased to be working with PATRIZIA to deliver much-needed industrial space that supports the demands of modern society, both in terms of last mile logistics and sustainability credentials.”
Paul Hampton, Chairman of the TransEuropean Property series at PATRIZIA, commented: “With this Platform, we now have the firepower to target one of the most exciting and rapidly growing segments of the European real assets market.
“The popularity of the Platform with investors is testament not only to our strategy but the faith our clients have in the operating partnership between PATRIZIA and KSP. Working alongside our local partner, we are excited about the opportunity to create value together and build a portfolio of truly first-class assets in the coming years.”
The overall aim of TEP VII GLi is to assemble a combined GBP 850 million (EUR 1 billion) portfolio of prime last mile logistics properties in strategic locations in Greater London.