Amazon Property, the leading London investor-developer run by CEO Charles Gourgey and COO Chris Lanitis, has committed, via Amazon Capital (the group’s private equity division), a £250 million real estate fund to invest in joint venture opportunities in the logistics, managed office solution, PBSA, Life Sciences and retirement sectors.
Amazon Property built its strong brand reputation for quality and fine attention to detail through delivering some 80 mixed use developments such as The Hempel Collection with British Land, The Park Crescent and The Soho Works Estate and acquiring over 3 million square feet of development and investment assets. The group’s success over a 25 year period is its operational flexibility in being able to consider a wide variety of asset classes, with varying degrees of complexity, and delivering best-in-class projects, this agility has been the hallmark of the brand.
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/retirement sector under Amazon Care.
Amazon Capital has committed £100 million of equity and debt/bank funding, to raise the £250 million which will be used to provide private equity funding to joint venture partners/development managers and asset managers in the alternatives sectors including logistics, managed office solutions, PBSA, Life Sciences and retirement care.
Chris Lanitis, COO of Amazon Property & Founder & CIO of Amazon Capital says: “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 to £30 million 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 jv assets including the 17 acre (400,000 sq ft) 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 210,000 sq ft single let warehouse at Wakefield 41 Industrial Park, located at the intersection of the M1 and M62 motorways.
In the managed office solution market, Amazon Capital will look to acquire landmark office buildings, with acquisitions from £5 million to £50 million, 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. The Conran Building in Shad Thames is an example of a currentjoint venture acquisition undertaken.
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.
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. Amazon Care are currently developing in Belgravia under the Loveday brand (fifth central London site) and are in the process of acquiring a number of sites in Zones 2 and 3.