Crossbay, the urban logistics strategy of pan-European investment manager MARK Capital Management, has acquired a London warehouse from abrdn, taking its UK portfolio to over 1million sq.ft.
Crossbay has acquired a 65,000 sq. ft. single-let warehouse in Dartford from abrdn, which follows a string of recent UK acquisitions for its second value-add fund – Crossbay II. A total of c.600,000 sq. ft. was added to Crossbay’s UK portfolio in 2024 – which now includes 13 assets – as the last mile-specialist steadily grew its portfolio in the UK’s most strategically located logistics hubs. Some of the acquisitions include:
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A 165,000 sq. ft. urban logistics estate in Watford comprising seven modern standalone warehouse units fully-let to seven tenants
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A 65,000 sq. ft. warehouse in Potters Bar, located just outside the M25 and acquired from Nuveen Real Estate
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A 40,000 sq. ft. prime industrial estate in one of London’s primary urban sub-markets, Croydon. The estate comprises three modern logistics units which are fully let to a single tenant and data centre operator Pulsant.
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An 85,000 sq. ft. prime distribution warehouse in Camberley acquired from Legal & General
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An 83,000 sq.ft logistics asset located in Manchester sub-market, Irlam
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A 25,000 sqft last mile unit located in London’s most sought after industrial sub-market, Park royal, which has already received planning to fully refurbish to an A-grade modern logistics unit
The UK was not a target market for Crossbay’s first vehicle, Crossbay I – which was fully realised in 2022 with an exit value of c. €1.6bn – but has since been a key focus for Crossbay’s second investment vehicle, Crossbay II.
Crossbay II closed in Q4 of last year with £660m of equity commitments and £1.5bn in total investment capacity including leverage. Crossbay’s primary focus is to invest in existing assets with potential for sustainability-focused refurbishments and capex programmes, although it also has a limited allocation to speculative development opportunities.
In addition to the UK, Crossbay has been actively acquiring assets in other major European logistics markets, including the Benelux region, Germany, France, Italy, and Spain, and now manages a portfolio of over c. 5million sq. ft.
Crossbay CEO Marco Riva commented: “Sharply rebased values and the ongoing market recovery has created an attractive buying window in the UK and we see this extending into 2025. Being well capitalised and having a granular origination function means we are well placed to take advantage of this.
Crossbay CEO Marco Riva commented: “Sharply rebased values and the ongoing market recovery has created an attractive buying window in the UK and we see this extending into 2025. Being well capitalised and having a granular origination function means we are well placed to take advantage of this.
“Our conviction in the UK is also informed by its high volumes of legacy stock that fail to meet today’s regulatory standards, making it strategically aligned with our focus on investments where reversionary potential and sustainability-linked outperformance can be unlocked through comprehensive refurbishment programmes. By doing this successfully, we are creating a highly future-proof portfolio in one of Europe’s most sought-after and inflation-linked asset classes, and where we believe the next few years will represent excellent vintages.”
