Private investment manager Meyer Bergman says the new Crossbay portfolio will thrive in the post-coronavirus economy. This contrasts with big box properties which, they warn in a statement, are more vulnerable to recession. They firm said that “large warehouse occupiers remain sensitive to the economy.”
It is based on an existing $500 million property portfolio with current tenants include 3PLs and major e-commerce companies, such as Amazon.
The firm’s hope is that planning restrictions in many urban areas, combined with the push to build housing on many plots, will limit the supply of last-mile delivery sites, helping them to push values up.
They are gambling that occupiers will take long leases and pay a premium for the best locations because speedy access to customers gives them a competitive advantage
Meyer Berghman says that Crossbay is the first pan-European real estate platform targeting single tenant assets in gateway cities.
Occupiers will benefit from Meyer Bergman’s global network of business partners, which includes many leading retailers, as well as the firm’s asset management expertise and specialist micro-market knowledge from its local teams.
Including near-term pipeline, Crossbay already has over €500m assets under management, with properties in Italy, France, Germany, Spain, Belgium and the Netherlands.
The existing last-mile portfolio enjoys an occupancy rate in excess of 97 percent and weighted average lease break of five years, with tenants being a mix of 3PLs (such as FedEx and DHL) and e-commerce brands (including Amazon).
Marcus Meijer, chief executive of Meyer Bergman, said: “Demand from e-commerce, online grocery shopping and third-party logistics businesses has soared in recent years. This is a structural shift.”
“Although we began our last-mile journey in 2018, COVID-19 has highlighted how integral urban logistics are to all aspects of life. As companies look to reassess their supply chains, we will see significantly enhanced investment targeting this area.”