Swiss Life Asset Managers expands pan-European industrial and logistics strategy with first UK asset

Following a successful round of capital raising earlier this year, Swiss Life Asset Managers has acquired a modern, well-located warehouse unit in Avonmouth. This deal marks Swiss Life Asset Managers’ first UK acquisition on behalf of its pan-European industrial and logistics fund.

This purchase furthers the fund’s ambitions to acquire a combination of multi-let industrial estates and logistics assets, while enhancing its geographical diversification. It also strengthens the fund’s ESG credentials, with the asset aligned to net-zero objectives.

The highly specified unit, constructed in 2022, is located in Avonmouth, a strategic South-West location for distribution warehouses near Bristol. The property, which is let to a third-party logistics provider, has a WAULT of 8.7 years. The property is close to the Port of Bristol and Bristol Airport and benefits from the city’s deep, highly skilled labour pool and strong occupier base.

Björn Pfeiffer, Deputy Head of Portfolio Management at Swiss Life Asset Managers commented, “This acquisition marks an important milestone for our pan-European industrial and logistics fund. As institutional capital continues to flow into the sector, demand for modern, energy-efficient warehouse space continues to grow across the UK, underpinned by stable valuations, resilient occupier markets, supply constraints and the ongoing shift toward e-commerce and streamlined supply chains. Avonmouth offers the type of high-quality, well-connected asset we look for across key European markets.”

Phil Sturdy, Head of Transactions, UK and Ireland at Swiss Life Asset Managers said, “This asset is a good first addition to the fund’s UK portfolio. The lease includes attractive rent review provisions to the higher of open market rent or RPI. With constrained supply in the South-West and sustained demand for prime logistics space, this asset positions us well to capture attractive income and long-term value creation.”

The acquisition marks another milestone for Swiss Life Asset Managers in the UK, following a series of positive developments including the appointment of Tim Munn and Eduardo Illitsch as Co-CEOs and the launch of a joint venture with Homes England and Capital&Centric to deliver £860 million in mixed-use residential developments.

Swiss Life Asset Managers were advised by Russell Property Consultants and Hillwood were advised by CBRE.

Swiss Life Asset Managers is a leading European asset manager and real estate investor with £259bn of assets under management that provides responsible and sustainable investment solutions for institutional and private investors