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Sign in Sign up for a FREE subscriptionDFI, Argo Real Estate launch U.K. urban logistics platform
Deutsche Finance International (DFI), a pan-European private equity real estate platform and an affiliate of Deutsche Finance Group, has launched a U.K. urban logistics platform in joint venture with Argo Real Estate, with the £177 million (€208 million/$228 million) acquisition of two portfolios in separate transactions.
Logistics is a conviction asset class for DFI, being underpinned by strong occupier fundamentals and record-low vacancy rates, as well as a limited pipeline of new development and, in many areas, a reduction in existing supply as space is lost to alternative uses.
The asset class has been unable to align market pricing with its return requirements over the past few years. Its recent rerating in the United Kingdom provided a window for DFI to enter the sector at a level where it can deliver opportunistic returns while taking core-plus risk.
The portfolios seed DFI’s U.K. urban logistics platform with 1 million square feet of space across 1
