PGC & McCafferty launch Chinese-backed UK warehouse investment scheme

PGC Capital and McCafferty Asset Management Group have formed a strategic partnership to jointly launch the first UK logistics warehouse investment scheme fully backed by Chinese investors.

PGC Capital will start raising capital from Chinese institutions and individual investors towards a targeted investment on phase one of the scheme of £1.2bn. It will be mainly used to invest in exceptional UK logistics and warehouse projects that will provide a steady return on investments. The second phase of the scheme is also being planned, which will extend to institutional and individual investors in another five countries, including the UK, Israel, Germany, South Africa and Switzerland.

The scheme will aim to identify first-rate logistics warehouse projects which are reasonably priced and have great growth potential. In order to secure reliable investment projects for Chinese investors, the scheme will look for existing well-located warehouses in developed countries with mature legal systems and sound economic growth.

Denise Li, CEO of PGC Capital, said, “With the rapid development of China’s economy over the past decade, Chinese capital and consumption capabilities have become a new way for China to connect with the world.

“An increasing number of independent investors are looking for low risk investment opportunities that provide stable returns from overseas markets, which is an area where our partnership provides value-add. McCafferty’s network and local knowledge in the UK and across other European countries, together with our leading management experience and business expertise, will ensure our partnership is well positioned to capture global investment opportunities for Chinese investors.”

First phase

The warehouse projects of the first phase of the scheme will be operated and managed by McCafferty Group, introducing a system provided by Yardi Systems. Through this system, investors will have 24-hour access to information about property projects and tenants.

Charles Whittle, CEO of McCafferty Group, added: “Since 2012, the UK warehouse market has grown steadily as the UK economy has recovered. The vacancy rate of warehouses decreased to 7.1% in 2016 compared with 18% in 2012, while unit rents have grown rapidly at an annual rate of 5%.

“Thus, we are very confident in the investment prospects of this scheme. Warehouse property in the UK is a perfect choice for Chinese independent investors who are looking to make medium- to long-term prudent investments, which will bring them stable returns with a low level of risk.”

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