Valor Real Estate Partners and QuadReal Property Group have formed a joint venture to invest €1bn in urban logistics assets across key UK, French and German cities.

QuadReal will be the majority investor in the jv, providing €440m (£396m) of initial cash, which "with leverage will provide in excess of €1 bn of investable capital", the company said.

Valor will be responsible for sourcing and managing the portfolio.

The jv will focus on last-mile logistics assets located in London, Paris and Berlin, with a secondary focus on "gateway cities" such as Manchester, Lyon and Frankfurt.

Jay Kwan, QuadReal's managing director, Europe, said:

"Urban logistics is one of our highest conviction strategies globally given the e-commerce growth that has accelerated rapidly as a result of Covid-19 and which is forcing businesses of all shapes and sizes to ensure their distribution networks are fit-for-purpose."