DCAM and Blackstone agree a new partnership

DCAM recapitalises UK and Dutch logistics portfolio and establishes prime logistics partnership with Blackstone

London 11 April 2017 – Delin Capital Asset Management (“DCAM”), a leading pan-European logistics real estate owner, investor and developer and Blackstone’s Core + platform have established a partnership to acquire prime logistics assets in Germany, Benelux and the UK. DCAM has contributed an initial seven asset portfolio of UK and Dutch assets to the venture comprising over 230,000 sqm of leased Grade-A logistics space, including a 58,400 sqm pre-let development in Roosendaal in the Netherlands. DCAM will be asset manager to the partnership.

DCAM and Blackstone plan to grow the portfolio through additional investment in logistics assets where locations are underpinned by a demand/supply imbalance.

Ekaterina Avdonina, Managing Director of DCAM, commented: “We are delighted to have created this new partnership with an established real estate investor in Blackstone and look forward to growing it over the coming years leveraging our combined experience to identify and acquire new opportunities across our target markets.”

“Occupier demand for high quality and well located warehouse and logistics space continues to gain momentum, underpinned by the structural changes taking place in consumer shopping habits. With the sector having demonstrated ongoing resilience and outperformance, we are confident that underlying market fundamentals are in place to support this new vehicle.”

DCAM was advised by JLL and Blackstone was advised by CBRE.

For further information please contact:

Delin Capital Asset Management
Ekaterina Avdonina
+44 (0)207 487 1220
investments@dc-am.co.uk

FTI Consulting on behalf of Delin Capital Asset Management
Dido Laurimore / Richard Gotla
+44 (0)20 3727 1000
dido.laurimore@fticonsulting.com

Notes to editors

About Delin Capital Asset Management

Delin Capital Asset Management (‘DCAM’) is a leading real estate company focused on European logistics.

DCAM will continue to manage its own portfolio of logistics assets whilst increasingly focusing on the development of new assets and investing in value-add logistics opportunities across its target geographies of the UK, Benelux and Germany.

DCAM’s strategy encompasses the development, ownership, and active management of best in class warehouse and urban logistics distribution properties which are well located and which are set to benefit from increasing growth in e-commerce and Europe’s logistics supply chain.

DCAM is headed and by Ekaterina Avdonina, one of the few very senior women in logistics property.

Delin Capital Asset Management UK Limited is an Appointed Representative of Gallium Fund Solutions Limited, which is authorised and regulated by the Financial Conduct Authority.

About Blackstone

Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $102 billion in investor capital under management. Blackstone’s real estate portfolio includes hotel, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America. Major holdings include Hilton Worldwide, Invitation Homes (single family homes), Logicor (pan-European logistics) and prime office buildings in the world’s major cities. Blackstone real estate also operates one of the leading real estate finance platforms, including management of the publicly traded Blackstone Mortgage Trust.


Consolidation centres: less is more

Consolidation centres: less is more

Fifty into one does go. At least if you’re consolidating the number of deliveries to one of London’s prime shopping streets it does (see case study, below). The Crown Estate has cut trip deliveries to Regent Street retailers by around three-quarters since 2009 and AXA IM – Real Assets is hoping to achieve a reduction of 50% of daily deliveries when its planned 1.4m sq ft office building at 22 Bishopsgate, EC2, is fully operational at the end of this decade.

The idea of consolidation centres – standard warehouses outside an urban centre – isn’t new, but London’s increasing pollution and traffic congestion levels are giving the concept new impetus. “The success of any consolidation process relies on it being universally adopted. It needs a critical mass,” says Harry Badham, AXA’s UK head of development.

At 22 Bishopsgate, where the planning consent was conditional on the provision of a consolidation centre (see development box, below), office tenants will need to sign up to the consolidated delivery service as part of their lease terms. The specifics of the building’s consolidation centre are still being determined, but it is likely to be located in the A13 corridor.

This raises the tricky issue of land supply. “Consolidation centres are fine in theory but the reality might not be so easy if it is dependent on a plentiful supply of readily accessible industrial property,” says Piers Hanifan, industrial consultant at London-based agency Kalmars.

Paul Weston, senior vice president at developer Prologis agrees. “There are still inappropriate industrial sites in London. Why not move them out to elsewhere? And we need to seriously look at green belt land,” he says.

There is unlikely to be a standard size for future consolidation centres because the amount of space required is dependent on the area or building being serviced, so warehouses could range from a few thousand to more than 200,000 sq ft.

Delin Capital Asset Management, which is hoping to be behind many of the capital’s new consolidation centres, believes they will need to be within a 15-mile radius of central London, where the issue of competing land uses, particularly residential, is most acute. “That’s why we think there should be joined-up thinking with local authorities. Space could come from obsolete stock and other types of real estate,” says Delin’s managing director Ekaterina Avdonina.

One solution would be to locate centres further outside, where land supply is better. But then, says Steve Mitchell, director at Colliers International: “Customer expectations for quick delivery may be compromised by congestion if products are delivered from longer distances outside London and cannot get there on time.”

And wherever a consolidation centre is located it adds a layer of cost to any distribution network, points out TFT partner Seth Love-Jones, who notes that the operational costs of a centre will probably outweigh fuel and mileage saved by vehicles.

The economic viability of consolidation centres may end up being the hardest part of the equation to solve. Kieran Soobadoo, associate solicitor at legal firm Russell-Cooke, says: “To date, centres have been funded largely by subsidies, and they are expensive to run. Landlords and tenants will be wary of the implications of a consolidation centre closing. Where tenants are required to use a particular centre, care will need to be taken in the drafting of leases to cover this possibility.”

Anyone expecting a sudden ring of consolidation centres around the capital is likely to be disappointed. Savills industrial director Bridget Outtrim says: “I think it’s something that will gradually evolve. They are likely to appear with large office buildings – but how often do they come along?”

Demand for consolidation centres 

As the immediate benefits of consolidation centres – cleaner air and less traffic congestion – are difficult for individual tenants to quantify and therefore cost effectively, it is perhaps unsurprising that neither developers nor industrial agents reports little demand for such buildings. “I’m not being bowled over in a rush for consolidation centres, though I think they will come eventually,” says Prologis head of London & South East markets, Paul Weston.

Enquiry lists remain disappointingly void of consolidation centre requirements, says Savills’ industrial director Bridget Outtrim. “This is going to be driven by policy [see development box, below] – a regulatory phenomenon that will create demand,” she adds.

One of the reasons 3PLs and other operators aren’t enthusiastic about the concept is that it is currently seen as a model associated with other countries, rather than the UK, reports Seth Love-Jones, partner at property consultancy TFT.

Case study – the Crown Estate 

Think Crown Estate and “early adopter” may not be the first phrase you associate with the landlord. However back in 2009, in the depths of recession, when the term consolidation centre was practically unknown in London, the Crown Estate set up an operation to coordinate deliveries to its retailer tenants in the heart of the West End.

The impetus for the project was a desire to reduce the volume of traffic on the famous shopping streets. The Crown Estate partnered with specialist Clipper Logistics to filter deliveries to participating retailers to a 76,000 sq ft warehouse at Harlow, Essex, before making the trip into the capital in one of two electric lorries. Now 50 retailers (around half of all retail tenants) use the service and the number is rising.

“It’s useful for them to have a plug-and-play logistics solution,” says Crown Estate portfolio manager Bob Dawson. Is it worth the money? Dawson suggests that the cost increase is marginal and outweighed by the benefits to local store environments. Critics, however, point out that many retailers have still not opted in. Dawson responds: “Our preference is not to enforce, but to try and persuade. We have to remember that some retailers have long-standing relationships with existing suppliers or their delivery arrangements are made nationally.”

The biggest issue faced by the operation so far has been getting replacement supplies for the electric vehicles. A smaller electric vehicle is used for a separate consolidation scheme run by the Crown Estate to collect restaurant waste in the Swallow Street area. At present there is no waste consolidation on Regent Street (the offices there generate a surprising volume, reports Dawson), though the Crown Estate is considering how this might be achieved in the future.

Carrot and stick to encourage development? 

The absence of a profusion of consolidation centres around the capital when there is broad agreement that the concept is not only sound but necessary suggests that the market may need some help to get centres established. Some see this as inevitable. Harry Badham, UK head of development at AXA IM –Real Assets, developer of 22 Bishopsgate, says: “It will almost become mandatory for new office buildings.”

Yet, so far, London’s local authorities have been exceedingly cautious about telling the market what to do. A few, such as Camden, Waltham Forest, Enfield and Islington, have worked jointly on a small-scale consolidation centre for their own deliveries, but key authorities like Westminster and the City of London have not made any firm pronouncements on the subject.

That may soon change. The City Corporation is due to discuss the topic in more detail later this year. “We’re still in the very early stages. At the moment we’re encouraging developers and business to look at this,” says director of built environment Carolyn Dwyer. Could the carrot turn into a stick? Dwyer is non-committal: “The last two large planning consents included the requirement for a consolidation centre. It will become a standard requirement that new developments have an environmental management plan. And that may or may not include use of a consolidation centre.”

Some of those who may provide future consolidation centre buildings are convinced that regulation is inevitable. “It will be a top-down approach – it won’t come from tenants voluntarily, but through changes in the planning regime,” says Ekaterina Avdonina, managing director at Delin Capital Asset Management.

For further information please contact:

Delin Capital Asset Management
Ekaterina Avdonina
+44 (0)207 487 1220
investments@dc-am.co.uk

FTI Consulting on behalf of Delin Capital Asset Management
Dido Laurimore / Richard Gotla
+44 (0)20 3727 1000
dido.laurimore@fticonsulting.com

 


DCAM Secures 58 000 Sqm Pre Let To Lidl E-commerce At Roosendaal The Netherlands

Further 150,000 m² of speculative and build to suit development planned for 2017.

Delin Capital Asset Management (“DCAM” or the “Company”), a leading pan-European distribution and logistics real estate investor and developer, is pleased to announce it has signed a 58,000 m² (645,830 sq ft) pre-let at its Roosendaal development, with Lidl E-Commerce (“Lidl”), the global supermarket chain.  This build to suit project is one of the larger being undertaken this year in North West Europe and demonstrates the ongoing demand for prime, high-quality logistics assets in the Netherlands, driven primarily by the opportunities presented by the continuing growth of e-commerce.

In addition to the pre-let, DCAM has committed to 150,000 m² (1.6 million sq ft) of new logistics development projects across the Benelux region during 2017, with 100,000 m² expected to be in construction by Q3 this year. This includes the speculative development of a 35,000 m² warehouse at Amsterdam Park, one of Europe’s largest Grade-A logistic parks, centrally located in the Port of Amsterdam, Europe’s 4th largest port. It benefits from easy access to the A5 motorway, connecting the site to Amsterdam-Schiphol Airport within a 10 minutes’ drive. Current tenants include GE, G-star and a number of other prominent pan-European retailers. 

Lidl has entered into a long-term lease, with no breaks. The specifications for the e-fulfilment warehouse, agreed in partnership with Lidl, include 12.20-metre eaves, extensive truck and car parking facilities, an above average dock to door ratio and circa 5,000 m² of office and social space. The building will achieve a BREAAM rating, to include state of the art thermal performance and a high efficiency power management system. Located in Borchwerf II Business Park, a multi-modal strategic location in the prime logistics hotspot of West Brabant, the development is just 2km from Roosendaal, which has a population of 77,000 and 60km from Rotterdam Port, Europe’s largest deep-water port area.

Unibouw will be the general contractor responsible for delivering the warehouse, which is expected to be completed in spring 2018. 

In addition to the current development activity in the Benelux region, DCAM is exploring a number of opportunities in the UK and Germany. The Company’s current portfolio is valued in excess of €550 million, comprising 17 assets across 580,000 m² and a broad range of tenants, with a specific focus on ecommerce retailers.

Ekaterina Avdonina, Managing Director of DCAM, commented: “Having started as a speculative project, our ability to agree exclusivity at Roosendaal just three months from securing the project, for what will be one of the largest projects of its type in Western Europe, is a strong endorsement of our capabilities.

“Occupier appetite for both pre-let and speculative warehouse development schemes is unabated, as demonstrated by the strength of a pipeline that should offer significant returns on investment, fulfilling what we forecast to be a significant gap in the market.

“As supply levels remain at record lows, demand for the highest-quality and state of the art big sheds is being driven by major retailers focusing their resources and capital on improving the end-to-end e-commerce offering.  Our ambition is to become a leading player in this space and we are confident that with our existing pipeline and UK and German expansion plans, we are well placed to achieve this.” 


Many unhappy returns

How is the rise of e-commerce–notably the phenomenon of merchandise returns–affecting manufacturer’s and retailers’ distribution facilities, staffing levels and networks?

Click below to read the full press release


DCAM Sews Up 100,000 sqm of Leasing Activity Across European Portfolio

Delin Capital Asset Management (DCAM or the ‘Company’), a leading real estate Company focused on European logistics is pleased to announce the completion of circa 100,000 m² of leasing activity across its European portfolio in four separate deals in last few months. The transactions completed are:

  • At Waalwijk in the Southern Netherlands, DCAM has agreed a new 12 year lease with Airopack, part of the Kelders group at the 17,340 m² distribution facility. The new lease follows the recent bankruptcy and administration of the previous tenant.
  • At Beiraweg 2-8 Amsterdam Port, DCAM has agreed a lease renewal on its 40,000 m² logistics property with the Fetim Group maintaining a 100% occupancy in their Amsterdam portfolio.
  • In Eindhoven, Netherlands, DCAM has secured a lease renewal with existing tenant Philips Lighting BV in the 19,900 m² facility, extending the lease to mid-2020.
  • Finally, at DCAM’s 222,000 sq.ft Agecroft Commerce Park facility in Manchester, DCAM has agreed a re-gear with Bunzl Retail and Healthcare Supplies Ltd, extending the lease to 2027.

Ekaterina Avdonina, Managing Director of DCAM commented:

“We have had a busy year to date in terms of asset management, working with both existing tenants and new ones, in the case of Airopack. This has led to us lengthening the portfolio lease length and improving the income, underpinning the overall quality of our European distribution portfolio and delivering on our business plans.”


Strengthening Dutch Presence

DCAM, a leading real estate company focused on European logistics, today announces the appointment of Gerwin Vos as Commercial Director. Gerwin’s appointment coincides with the opening of a new office in Rotterdam, bringing DCAM’s international real estate presence to ten people across London and the Netherlands.

Gerwin joins DCAM with over 20 years of experience in the logistics sector, having joined from DTZ Zadelhoff, where he served as Director Logistics, with a key focus on both the occupier and investment markets across the country. During his 13 year tenure at DTZ Zadelhoff, Gerwin was responsible for operations spanning the Netherlands, managing a team of six real estate professionals. Prior to joining DTZ Zadelhoff, Gerwin also served as a senior agent in commercial real estate. In his new role, Gerwin will be responsible for all new commercial activities.

Ekaterina Avdonina, Chief Executive at Delin Capital Asset Management, added:

“It is testament to the strength of our business that we have been able to attract talent such as Gerwin, who will play a vital role in our progress within the Netherlands and elsewhere in our target markets. Gerwin brings with him an unrivalled knowledge of the logistics market, and we look forward to working with him as we continue to source development and income accretive opportunities in key logistics hubs. Furthermore, this appointment now brings DCAM’s team to ten real estate professionals located across Europe which in addition to the opening of our new Rotterdam office, underpins both the strength and ambition for the business.”


DCAM Announces Strategy to Become Full-Service Western European Logistics Player

Delin Capital Asset Management Announces Strategy to Become Full-Service Western European Logistics Player Under Leadership of Ekaterina Avdonina

02 June 2016 – Delin Capital Asset Management (‘DCAM’ or the ‘Company’) has announced a new strategy to become a multi-faceted (full service) leading European logistics real estate company, under the leadership of Ekaterina Avdonina. The company was established in 2012 to focus on the acquisition and management of core logistics assets in the UK and Western Europe on behalf of investors.

Ekaterina has been appointed managing director DCAM, succeeding Christian Jamison who left the business to pursue other interests. She has a strong track record in the logistics sector having been the CIO since the Company’s inception and has been integral in growing the Company’s assets under management to over €500m.

To date the Company has acted as an asset manager, making investments on behalf of clients solely into prime logistics assets in the UK and Benelux. Currently the Company manages a portfolio providing over 550,000 m² of warehouse and distribution space.

Under Ekaterina’s leadership the Company’s strategy will evolve to encompass the development, ownership, and active management of best in class warehouse and last mile urban logistics distribution properties which are well located and which are set to benefit from increasing growth in e-commerce and Europe’s logistics supply chain. DCAM will aim to think innovatively and remain at the forefront of technological changes that impact and challenge the logistics real estate sector.

In an initial move towards this, the Company will start to engage in development and today is pleased to announce its first large scale speculative development in the Netherlands of a 40,000 m², €30 million GDV logistics warehouse close to the ports of Rotterdam and Moerdijk. The prime location is attractive for DCAM because of current low vacancy rates and strong take up.

The Company is also pleased to announce a number of new appointments, providing further strength and expertise to the business.

  • Bart de Sitter has joined as development director. Prior to joining DCAM he held various roles in construction and development companies focussed on logistics and industrial.
  • Amos Chia has joined the investment team and will be responsible for identifying and underwriting new acquisitions. He joins from Revetas where he was a Senior Investment Analyst.

Commenting, Ekaterina Avdonina, managing director, DCAM, said:

“I am excited to be leading the next phase of DCAM’s evolution which will see it become a full-service Western European logistics company, building on our existing expertise and track record in the sector. We firmly believe that logistics assets (both big box and urban units) will continue to benefit from strong occupational demand supported by the structural shifts that are taking place in the purchase and delivery of goods driven by E-commerce. With a strong team in place, we are well positioned to identify further investment and development opportunities in order to grow our business and to become a key player in the European market.”


Christian Jamison to leave Delin Capital Asset Management

Following the successful completion of the CPP1 Fund, a portfolio of sixteen prime, income producing, logistics assets in the UK and the Netherlands, Christian Jamison has chosen to pursue other projects outside of DCAM.

He will be leaving the business in February and will handover his duties to Ekaterina Avdonina, who will assume the role of CEO on his departure.

Christian has been instrumental in building the DCAM business and delivering the CPP1 Fund, and we thank him and wish him well for the future.


Strengthening Our Team With Appointments of Andy Colman and Jonathan Gardner

Delin Capital Asset Management, (‘DCAM’ or the ‘Company’), a Jersey registered real estate investment advisor and asset manager focused on investments in logistics assets in the UK, the Netherlands and Belgium, announces two senior appointments to strengthen its team.

Andy Colman joins the Company as Finance Director. He comes with over 25 years of experience within the fund management, real estate and investment sectors, having originally trained as a Chartered Accountant with PwC. His experience within the real estate sector encompasses three years as Finance Director of Aerium Finance where he oversaw over £600 million of investment into the UK office market. Prior to this, Andy served as European CFO for CBRE Global Investors, where he managed financial operations across five European offices, in addition to structuring and launching a number of Pan-European and UK value-add and core funds. He also supervised the business’ administration and investor reporting.

Jonathan Gardner, a former Regional Director of Ashtenne’s £500 million Industrial Fund, brings with him a proven track record of identifying and negotiating new acquisitions and commercial leases in the industrial and logistics sector. Having also spent nine years managing Warner’s £300 million Radial Fund, Jonathan oversaw all investment into the UK logistics property market. Most recently Jonathan worked for Mapeley Estates Ltd, where he headed a portfolio of 300 assets within the UK.

Christian Jamison, Chief Executive at Delin Capital Asset Management, added:

“As Delin Capital Asset Management maintains its commitment to expansion, it is essential that the strength and depth of our team grows with it. Andy and Jonathan are fantastic senior additions to our business, and their combined industry experience and knowledge will provide us with an invaluable insight and expertise in logistics and fund management, which we will look to leverage as we continue to grow.”