Oryx secures €115m for first UK logistics development fund

Oryx Real Estate Partners has successfully closed its debut UK logistics development fund, securing over £100 mln (€115 mln) in commitments from international investors.

Logistics

The fund will target 4-5 modern and sustainable logistics developments in undersupplied submarkets, focusing on well-located sites suitable for distribution occupiers. It will concentrate on developing small to mid-sized, Grade A assets with excellent access to infrastructure and labour, aligning with modern occupier needs.
Oryx aims to capitalize on the sector's attractive income growth prospects and long-term stability, targeting sites up to 6 hectares, with or without planning consent. The investment and asset manager has identified a strong near-term pipeline of potential investments, focusing on locations with existing infrastructure and easy access to large populations, making them ideal for distribution companies and ensuring a readily available workforce.
International investors are increasingly targeting repriced UK commercial real estate assets, drawn by solid fundamentals, a stable market, good liquidity, and strong occupational resilience.
Johan Eriksson, managing partner of Oryx, commented: “This is one of the most compelling investment windows we have witnessed in the UK commercial real estate sector since the global financial crisis. We believe we can offer international investors something different from other managers out there. Crucially, we have created a vehicle that can benefit from both periods of stability and volatility in the investment cycle.”
Fawaz AlRajhi, chairman of Oryx, added: “Following the correction in land values over the past years and the continued potential for rental growth, the UK industrial and logistics sector remains one of our high-conviction sectors. Stabilizing construction costs and interest rates support the delivery of healthy returns, and motivated sellers and developers have enabled us to secure a strong pipeline of assets. More broadly, the UK market offers superior liquidity, more defensive valuations, and greater economic resilience relative to other geographies.”
Acting on behalf of international clients, Oryx has assembled a £200 mln (€231 mln) UK real estate portfolio since beginning capital deployment in 2020. The firm's investment strategy covers a broad range of sectors and risk profiles, including core, value-add, and development opportunities. Notable assets in their portfolio include the 3 Bunhill Row property in Central London and the recently completed logistics warehouse at 109 Wolverton.