Swiss Life AM enters UK market with first logistics acquisition

Swiss Life Asset Managers has expanded its European industrial and logistics portfolio by acquiring a modern warehouse in Avonmouth, marking its first UK asset. 

Logistics

This acquisition, following a successful 2023 capital raise, aligns with the fund's strategy to diversify geographically and acquire multi-let industrial and logistics properties.
The newly constructed unit in Avonmouth, a key distribution hub near Bristol, boasts strong ESG credentials and is let to a third-party logistics provider with a WAULT of 8.7 years. Its strategic location offers proximity to the Port of Bristol, Bristol Airport, and access to a skilled labour force.
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.”
This acquisition builds on recent positive developments in the UK for Swiss Life Asset Managers. These include the appointment of Tim Munn and Eduardo Illitsch as Co-CEOs and a major joint venture with Homes England and Capital&Centric for £860 mln (€1.0 bn) in mixed-use residential projects.
Russell Property Consultants advised Swiss Life Asset Managers, while CBRE advised Hillwood.