IO, Grosvenor and Quilvest close £120m industrial property vehicle

IO, the leading manager of multi-let industrial estates, has closed a multi-let industrial property investment vehicle with the backing of Grosvenor, the privately owned property group, and Quilvest, a leading global independent wealth manager and private equity investor.

IO will manage the vehicle, which has close to £120 million to invest.

The launch of the new vehicle follows the successful completion of the first IO investment programme with Grosvenor, which was launched as a joint venture in January 2013. In total, IO has bought 14 estates for the joint venture at a combined cost of around £35 million.

Angus Scott-Brown, managing director of IO, said:

“The new vehicle provides a compelling opportunity for two international property investors to access the specialist management skills required in the multi-let industrial sector.

For our first venture with Grosvenor in 2013 we spotted the opportunity to generate strong returns by acquiring multi-let industrial estates at relatively high yields and growth. Now, with the gap between yields and the cost of capital still attractive, it is the limited supply and lack of new development that suggests a strong period of rental value growth.”

Chris Taite, Grosvenor Group Investment Director, said:

“Following the success of our first investment programme with IO, we are enjoying working with the team again, alongside Quilvest, on this second vehicle. The access to opportunities that IO provides us with, coupled with the team’s specialist expertise, allows us to maintain exposure to sectors that we aren’t directly active in, ensuring the ongoing diversification of the Grosvenor Group’s property portfolio.”

Guy Zarzavatdjian, Quilvest Private Equity CEO, said:

“We are delighted that Quilvest Real Estate Team is partnering with IO and Grosvenor with whom we share the same family values and approach. This is also the chance to build upon a common understanding of the opportunity to invest in the UK industrial property sector. We therefore consider this investment as an appropriate response to a rather volatile investment space. It also is in line with our ambition to continue developing similar unique partnerships across European key markets.”