New urban logistics property platform launched
UK-based real estate operating partner and investment manager ARGO Real Estate has teamed up with investor Blue Coast Capital to launch a new urban logistics platform specializing in repositioning urban logistics investment assets ripe for refurbishment into best-in-class sustainable properties.
By Liza Helps, Property Editor, Logistics Matters
THE PLATFORM has successfully completed its first acquisition with the purchase of the Tuscam Trading Estate in Camberley, Surrey for around £40 million. The partnership intends to aggregate a £500m portfolio, in economically strong and densely populated UK cities and towns, enhancing both income and capital values.
The 183,000 ft2 property in Camberley is described as an under-rented industrial estate. It will undergo a comprehensive refurbishment to modern sustainable standards while tenant businesses remain in operation, unlocking substantial rental reversion and capital uplift.
A strong pipeline of further acquisitions has already been identified, with additional deals expected to complete soon.
The new platform marks the second collaboration between ARGO and Blue Coast Capital in the urban logistics sector, following successful partnership in a fund managed by ARGO that built a portfolio of last-mile logistics assets in London and the South East. The assets were sold to Blackstone in 2021.
ARGO has a strong track record in urban logistics, having completed more than £650m of transactions in the sector and delivering superior risk adjusted returns for investors.
ARGO Real Estate CEO Crispin Gandy said: “The UK logistics sector continues to grapple with an acute undersupply of high-quality urban space, driven by sustained long term occupier demand and powerful structural tailwinds, including e-commerce growth and urbanisation alongside a persistent shortage in supply.
“This backdrop, combined with the current macro-economic climate and investor appetite for best-in-class sustainable assets has created a compelling strategic opportunity for ARGO.
“We are seeing a compelling opportunity to aggregate assets with strong underlying fundamentals and unlock significant income and capital growth through our proactive and hands on asset management approach. Our goal is to create a best-in-class urban logistics platform with meaningful scale, and we’re excited by the pipeline opportunities we’re already securing.”
