Valor Real Estate Partners has launched Valor Industrial Partners 1 (VIP1), a long term investment fund in partnership with American International Group (AIG).

VIP1 will invest in, and selectively develop, logistics and industrial real estate in the UK and European distribution markets.  The strategy will emphasise infill locations and will seek to capitalise on increasing demand for logistics space, especially from the growth of e-commerce.

The initial tranche of committed capital will fund €300m (£268m) of assets, but with a capacity to add similar sized tranches in the future.  Valor’s existing UK assets will be transferred into the venture and will simultaneously be refinanced by Deutsche Pfandbriefbank.

Christian Jamison, managing partner of Valor said:

“We are delighted to announce the launch of VIP1 and our partnership with AIG. We believe that by combining our expertise in the logistics and industrial space and AIG’s strength as a major global investor, we will continue to establish Valor as a leading logistics and industrial real estate investment platform in Europe.  We continue to see an exciting pipeline of investment opportunities and are looking forward to completing the investment phase of VIP1 on behalf of the partnership.”

Brooks Mohrman, managing director, global real estate at AIG added:

“We are excited to be partnering with Valor in Europe.  The team has extensive global experience and a fantastic track record as well as a clear cut strategy, which they are well-placed to execute.  We are looking forward to working together as long term partners.”