Amazon Property has committed a £250m real estate fund to invest in joint venture opportunities in the logistics, managed office solution, PBSA, Life Sciences, and retirement sectors
The real estate fund was committed through the group’s private equity division – Amazon Capital.
Over the last two years, Amazon Property has focused on joint venture investments and trading assets and is now set for further expansion with a new wave of private equity funding and entry into the rapidly expanding care and retirement sector under Amazon Care.
Real estate fund will create new business opportunities across London and the UK
Chris Lanitis, COO of Amazon Property and founder & CIO of Amazon Capital commented: “Amazon Capital is a bespoke private equity operator who understands the real estate market and as a JV partner we offer long-term support, flexibility, innovation together with streamlined and fast decision making.
“We have committed £250 million of fresh funding and are seeking new joint venture opportunities across London and the UK with other talented entrepreneurs and sector leaders.
“We are able to make fast investment decisions, as opposed to prolonged board committees, and are committed to forming equity platforms and repeat deal flow in line with our partners’ long term business endeavours.”
In logistics, Amazon Capital will focus on funding or entering joint ventures (£5-30m investment value schemes) for acquiring or developing 2nd generation estates of between 5 acres to 20 acres in size, typically providing 200,000 sq ft to 500,000 sq ft of warehouse accommodation.
Previous funding by Amazon Capital has been used to acquire joint assets including the 17 acre Sirdar Business Park in Wakefield, the 15 acre Swan Lane Industrial Estate in Wigan and the 6 acre Moss Electrical Estate in London’s Dartford and most recently, a single let warehouse at Wakefield 41 Industrial Park.
In the managed office solution market, Amazon Capital will look to acquire landmark office buildings, with acquisitions from £5-50m, in locations including Central London, Greater London and the Home Counties.
With the acquired office buildings, Amazon Capital is offering a bespoke approach leasing floors to tenants and providing a Cat A plus plug-and-play office setup.
In the student accommodation sector, Amazon Capital will provide funding for acquiring PBSA sites without planning, providing 300 to 500 beds, in key university centres such as London and regional cities.
Funding will also provide opportunities for medical infrastructure
In medical research hubs such as Cambridge, Oxford, Stevenage and London, Amazon Capital will partner with global Life Sciences companies to provide funding for real estate infrastructure such as laboratories, R&D plants, medical/medicine manufacturing plants, drug/medical warehousing and scientist office spaces.
In the care sector, Amazon Care will be developing a collection of care homes of between 25,000 sq ft to 70,000 sq ft in size, providing between 25 to 150 suites, complete with luxurious lifestyle amenities operated through a private-rented-sector model with a focus on dementia care.
