ARA's Europe arm forms JV to invest in UK logistics, industrial assets

ARA Dunedin, the European arm of ARA Asset Management, has entered into a joint venture (JV) with global private markets firm Partners Group to invest in logistics and industrial assets in the United Kingdom.

The JV is targeting a portfolio gross asset value of £250 million (S$464.5 million), and will focus on assets near major regions that need upgrading, extending or reletting, the companies said in a joint release on Thursday (Oct 21).

The JV will pursue value-add returns from repositioning properties using intelligent selection, improving management and undertaking strategic capex.

ARA Dunedin earlier said it would acquire a portfolio of 7 industrial properties located in the UK, which will form the initial investment for the joint venture.

Rahul Ghai, Partners Group's managing director and co-head of private real estate in Europe, noted that the industrial sector in the UK is seeing high levels of demand amid a rise in e-commerce, yet shrinking supply due to competition for land from other real estate segments such as residential.

ARA Dunedin's chief executive Roun Barry added: "We look forward to working with a new capital partner that shares our view that actively managing real estate adds value."

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ARA Dunedin is a JV between ARA UK Asset Management and UK property asset manager Dunedin Property Asset Management, to invest in and manage real estate assets in the UK.

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