Aberdeen Standard Investments (ASI) is set to acquire a 60% interest in Tritax Management, the fund manager behind Tritax Big Box REIT and Tritax EuroBox.
The move by ASI comes as it looks to strengthen its offering in the growing logistics real estate market.
Tritax specialises in logistics and has around £5.1bn assets under management throughout the UK and Europe, including the listed Tritax Big Box and Tritax EuroBox.
ASI has its own listed European logistics fund in Aberdeen Standard European Logistics Income (ASLI).
Tritax and ASI have said the three companies will retain their investment decision making autonomy and control following the deal, which is expected to complete in early 2021 subject to the receipt of regulatory approvals.
The deal is a clear indication of the strength of the logistics sector and the attractiveness of it to investors. The emergence of online retailing has boosted demand for logistics space, which has only increased during the pandemic. The structural shift in consumer habits has made logistics one of the biggest real estate growth sectors over the past six years, at the expense of bricks-and-mortar retail.
The long-term structural changes across the sector, such as the shift to online shopping, the importance of delivery capabilities, technological developments and subsequent supply chain dynamics continue to strengthen ongoing investment into the space.
ASI said the investment signals a step change for it as it looks to grow its logistics capabilities globally. The Tritax Management team will bring a different skill set to the table, especially its ability to source investment deals and provide growth opportunities.
Tritax’s James Dunlop and Colin Godfrey will lead ASI Real Estate’s Global Logistics Team.
[QD comment: The announcement does pose the obvious question of a possible merger of ASLI and EuroBox in the future. Although the two companies have different investment strategies – EuroBox is focused on big box facilities and ASLI on smaller mid-box lot sizes – knocking the two funds together could be an interesting move.
EuroBox has 13 assets worth around €850m and ASLI has 14 assets (and has just announced it has entered into exclusive negotiations to buy a 15th) that are worth €428m. Both companies are desperately looking to scale up in a sector that is burgeoning due to increased online retailing. Merging would help to diversify the two portfolios and create a European logistics powerhouse with scale.
Aside from the two funds, the deal is a clear indication of the appeal of the logistics sector. Bringing resources together – ASI is one of the biggest real estate investors in Europe and has offices across the continent, while Tritax specialises in the logistics sector and has unique expertise as well as an established £5.1bn platform – makes a lot of sense.]
ASLI : BBOX : EBOX : Aberdeen Standard Investments acquires 60% stake in Tritax Management