Intermediate Capital Group’s real estate division ICG Real Estate has formed Metropolitan Last Mile, a distribution and industrial platform focused on major urban centers across the U.K., France and Germany.
The platform plans to expand to over €1.5 billion ($1.6 billion) within the next 18 months, with a strong pipeline already identified across key target markets, officials announced last week.
“In the past six months we have taken advantage of the significant dislocation and repricing in European logistics markets to assemble the existing portfolio, under the radar and at very attractive prices,” said Krysto Nikolic, global head of ICG Real Estate. “As markets continue to be unstable, we anticipate that our ‘special situations’ approach to the sector will allow us to access value in an asset class that continues to have very robust demand and supply fundamentals.”
Over the last nine months, the Metropolitan platform has bought 35 assets through eight separate transactions, with a total gross asset value in excess of €500 million. Officials added that the portfolio was acquired in a ‘repriced’ market environment through off-market and special situations.
Approximately 65% of Metropolitan’s assets are located in London, Paris, and Berlin, where there remains significant supply and demand tension and demonstrable rental growth potential. The portfolio is fully let and offers significant value creation opportunities through densification and rental reversion through active asset management.
“We are happy to have received the backing of some of the leading global investors to create Metropolitan Last Mile,” said Adam Golebiowski, managing director, co-portfolio manager of ICG REO. “Our pipeline is highly promising, particularly in the current repriced environment, presenting excellent investment opportunities. We are confident that Metropolitan Last Mile will establish itself as a benchmark European platform for urban distribution and industrial assets.”
