DCAM Appoints Jeff Pym as Chief Financial Officer

Delin Capital Asset Management (“DCAM”),a leading pan-European logistics real estate owner, investor and developer, announces the appointment of Jeff Pym as Chief Financial Officer. His appointment completes the senior executive management team, following Anthony Butler’s appointment as Chief Investment Officer in February this year.

Based in DCAM’s London office, Jeff will report directly to Managing Director Ekaterina Avdonina. He will have responsibility for all aspects of the company’s financial operations, including the debt programme and the tax structuring of its investment and development vehicles, whilst also supporting any future equity raising programme.

Jeff has more than 24 years’ experience working in the UK real estate sector. He joins DCAM from Tritax, where he played a key role in the successful 2013 IPO of Tritax Big Box REIT, before becoming Chief Financial Officer of Tritax Management LLP in 2015.  Prior to that he was Finance Director for Squarestone, a multi-sector investment and development private real estate fund manager, and played a key role in the listing of Squarestone Brasil on AIM. He has also held the position of Group Director of Finance of Hanover Housing, a major housing association specialising in retirement accommodation.

Jeff qualified as a Chartered Accountant with Moore Stephens in 1989 and holds a degree in Management Science and Physics from Keele University.

Ekaterina Avdonina, Managing Director of DCAM, commented:

“The business has achieved a number of milestones over the past year, as we continue building a leading European logistics platform; growing our development pipeline to more than one million sqm; launching in several new markets; and bringing in a number of high calibre individuals, both at the executive management level but also more locally in our key markets. Jeff brings with him a wealth of sector and capital markets experience which we look forward to leveraging as we maintain this upward trajectory.”

Jeff Pym added:

“With the logistics sector continuing to demonstrate long term growth potential, the opportunity to move beyond the UK market and help deliver on DCAM’s pan-European growth strategy to create one of Europe’s leading investors and developers represented an extremely exciting challenge. I look forward to working alongside both Ekaterina and Anthony and ensuring the business is well-positioned to take advantage of the growing importance afforded to the European logistics sector.”


Dcam Appoints Anthony Butler As Chief Investment Officer

London, 6 February 2018 –

Delin Capital Asset Management (“DCAM”), a leading pan-European logistics real estate owner, investor and developer, announces the appointment of Anthony Butler as Chief Investment Officer.

Based in DCAM’s London office, Anthony will work alongside Managing Director Ekaterina Avdonina and Finance Director Andy Colman, with responsibility for implementing DCAM’s investment decisions across its key markets, as well as driving inward investment to support the business’ ambitious growth plans.

Anthony brings nearly 30 years of international real estate experience. Prior to joining DCAM he spent two years at Generali Real Estate as Global Co-Head of Investment Transactions and Global Head of Indirect Investments, managing and executing the global acquisition and sales strategy, as well as overseeing the indirect property portfolio. He also sat on both the Global Investment and Management Committees. For six years before that he set up and latterly ran TIAA-CREF’s UK and European platform, growing the business to c. £3 billion of assets under management. He was also instrumental in merging the business to help create TH Real Estate.

In 2008 he set up AIM, an independent Property Investment and Asset Management Company. Earlier roles include Head of European Asset Management at MGPA (now Blackrock) and Head of Asset Management, UK, at RREEF (now Deutsche Asset Management). He also has experience working for the major real estate consultancies Donaldson’s (now DTZ) and Hillier Parker (now CBRE). Anthony is a Chartered Surveyor and member of the Investment Property Forum.

Ekaterina Avdonina, Managing Director of DCAM, commented:

“Anthony brings outstanding international investment experience and a proven track record of success derived from working at a number of real estate investment and fund management businesses. We have ambitious plans to rapidly grow the business in 2018 and Anthony will play a key role in delivering this, leveraging his global perspective and significant network to drive forward our existing investment strategy and identify new avenues to grow our logistics investments. We continue to build a talented team at DCAM and I am personally very much looking forward to working closely with Anthony.”

Anthony Butler added:

“It continues to be both a very exciting and dynamic time for the logistics sector. Working with both Ekaterina and Andy, I am very much looking forward to helping DCAM deliver first class investment products and to growing an already successful platform.”


Dcam Appoints Steve Mitchell As Uk Commercial Director

London, 24 January 2018 –

Delin Capital Asset Management (“DCAM”), a leading pan-European logistics real estate owner, investor and developer, announces the appointment of Steve Mitchell as UK Commercial Director.

Based in DCAM’s London office, Steve will be working alongside Don Bailey, with responsibility for developing occupier relationships and generating new stakeholder ties, supporting DCAM’s commitment to grow its UK logistics portfolio to over three million sq ft in the next two years.

Prior to joining DCAM, Steve spent 14 years at Colliers International, overseeing its industrial transactions activity on behalf of a variety of blue chip occupiers, primarily focused on the food distribution and dot.com logistics sectors. Before that he spent 15 years supporting Sainsbury’s as it built a UK-wide logistics real estate portfolio.

The appointment will add further expertise to DCAM’s UK team following the appointment of Don Bailey last year as UK Development Director, who brings more than 20 years’ experience with leading UK logistics businesses.

Ekaterina Avdonina, Managing Director of DCAM, commented:

“With an ambitious development pipeline in the UK during 2018, Steve brings significant commercial experience operating in the logistics real estate sector, in what is a key geography for DCAM. We look forward to leveraging the relationships he has built with some of UK’s leading occupiers, which will complement those of the rest of the UK team and in an area which is increasingly important in today’s market.”


Dcam Amasses 300,000 Sqm Dutch Development Pipeline And Targets Uk And Spain

-126,000 sqm under construction; pre-lets secured totalling 100,000 sqm-

London 22 January 2018 –

Delin Capital Asset Management (“DCAM” or the “Company”), a leading pan-European distribution and logistics real estate investor and developer, announces it has committed to deliver a €400mn development programme in the Netherlands by mid-2019, comprising 300,000 sqm of prime logistics space.

DCAM currently has 126,000 sqm of Grade-A logistics assets under construction and a further 174,000 sqm in permitting and site preparations, comprising both build-to-suit (90,000 sqm) and speculative development. It recently secured two pre-lets, totalling 32,000 sqm, with Van Der Helm, a leading Dutch 3PL operator, who has signed long-term lease agreements at Moerdijk, in the Southern Netherlands (17,000 sqm) and at DCAM’s Rotterdam development (15,000 sqm).

A further 174,000 of sqm of development is currently in permitting, with construction anticipated to commence in the first half of 2018.

In total, DCAM is targeting a committed development pipeline of 900,000 sqm across the Netherlands, UK and Spain by 2019.  To support this ambition, DCAM has made a number of senior hires in the UK and Spain and is currently in advanced discussions on a number of acquisitions in both countries.

Ekaterina Avdonina, Managing Director of DCAM, commented:

“We continue to see strong demand from a range of occupiers for big box assets, supported by a favourable economic backdrop stimulating exports, retail sales and consumer spending.

“Having built up a strong presence across our key markets and with the talent in place to both further build and deliver on our significant pipeline, we are well positioned to benefit from the ongoing tight supply and lack of new development and deliver significant future value from our investments. We expect the wider European landscape to remain favourable for well-established logistics operators as we move into 2018, and are excited for the opportunities we are seeing.”

Jose Espinoza, Development Director for DCAM in Spain, added:

“The Spanish logistics market offers an attractive opportunity for investors and developers, as the domestic economy recovers and increasing consumer spending supports the rapid growth of the e-commerce sector. We have identified a number of opportunities through leveraging our strong local relationships and look forward to positioning DCAM as a major developer of high-quality logistics assets in the future.”


Delin Capital Appoints Don Bailey As Uk Development Director

London, 27 September 2017 –

Delin Capital Asset Management (“DCAM”), a leading pan-European logistics real estate owner, investor and developer, announces the appointment of Don Bailey as Development Director for the UK.

Based in DCAM’s London office, Don is responsible for the sourcing of new urban logistics and big box development opportunities and contributing to the delivery of DCAM’s ongoing UK development programme. DCAM is committed to building over 2 million sq ft of logistics assets over the next five years across the UK, alongside pursuing its Dutch development strategy to deliver 3.5 million sq ft of prime logistics space, targeting completion by the end of 2018.

Prior to joining DCAM, Don spent 15 years as a Director of Chancerygate, where he was responsible for the procurement and delivery of its development programme. Before that he worked for King Sturge, where he specialised in advising funds and developers on project delivery and technical matters.

Ekaterina Avdonina, Managing Director of DCAM, commented:

“Don joins us with a proven track record of delivering complex logistics projects across the UK and we look forward to benefitting from his expertise, as we continue to grow our business through both investment in existing schemes and our own developments. We have an exciting pipeline of activity lined up during the rest of 2017 and into next year and we look forward to updating the market in due course.”


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?

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