The JV has secured initial capital commitments of €440m and will fo cus on London, Paris and Berlin.

Valor Real Estate Partners and QuadReal Property Group have formed a joint venture to invest €1bn in urban logistics across the UK, France and Germany. The JV is looking to benefit from the surge in demand for last-mile assets due to an acceleration in online shopping during the Covid-19 pandemic.

Quad Real, which owns more than 75 million sq ft of industrial buildings across North America, Europe and Asia, will be the majority investor in the JV. The Vancouver-headquartered firm manages the real estate portfolio of $171.3bn British Columbia Investment Management Corporation.

”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," said Jay Kwan, managing director Europe at QuadReal.

Quad Real and London-based urban logistics specialist Valor, which started discussions in the summer, will launch the JV with initial capital commitments of €440m, giving it an investment capacity of more than €1bn, including leverage.

Full article available here.