Advent Capital Investments Ltd targets logistics with £32.5m debt facility

Advent Capital Investments Ltd, the specialist UK real estate investment manager, has secured a £32.5m five-year senior debt facility from Bank of Ireland for its UK Thematic Growth Fund.

Established in January 2018, the closed-ended Advent Capital Investments Ltd UK Thematic Growth Fund targets properties aligned to future occupational demand in locations desired by the occupiers of tomorrow. The top-down thematic approach combines with bottom-up, market-specific knowledge to identify the optimal acquisition opportunities.

Advent Capital Investments Ltd aims to invest the £32.5m in the logistics sector to enhance the diversification of the UK Thematic Growth portfolio. More importantly, logistics is one of the most compelling areas of the UK real estate market displaying solid long-term growth potential.

The UK logistics sector is benefiting from structural change in the retail sector, with increased spending directed online. In fact, ONS data showed online spending reached 19% of total UK retail sales last month, compared to 11% five years ago.

“Our UK Thematic Growth Fund aims to tap into the transformational changes shaping our society and our economy. This additional £32.5m facility will allow us to build further on our successful thematic strategy and capitalise on the clear opportunities presented by last mile delivery type logistics units,” Giles King, manager of the Advent Capital Investments Ltd UK Thematic Growth Fund, says.

“The UK logistics space continues to rapidly expand, and forecasts suggest it will continue to perform well over the medium to long-term, albeit slower than the previous few years of spectacular growth. This is creating demand from retailers and e-commerce occupiers for logistics warehousing capable of serving the growing consumer expectation of rapid online and in-store fulfilment and returns.”

Andrew Pendered, Head of Property Finance Group, GB for Bank of Ireland, adds: “Advent Capital Investments Ltd has an excellent reputation due to its proven track record and we are delighted to be able to support the business and its partners with this initial refinance. We very much look forward to building the relationship and as Advent Capital continues to grow the fund over the coming years.”