London investor-developer Amazon Property has committed, via its private equity division Amazon Capital, a £250 mln (€300 mln) real estate fund to invest in joint venture opportunities in the logistics, managed office solution, PBSA, life sciences and retirement sectors.
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 mln of equity and debt/bank funding, to raise the £250 mln 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, chief operating officer of Amazon Property & founder & chief investment officer of Amazon Capital said: '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 mln 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 mln investment value schemes) for acquiring or developing second generation estates of between 5 acres (20,000 m2) to 20 acres in size, typically providing 200,000 ft2 (18,500 m2) to 500,000 ft2 of warehouse accommodation.
In the managed office solution market, Amazon Capital will look to acquire landmark office buildings, with acquisitions from £5 mln to £50 mln, in locations including Central London, Greater London and the Home Counties.
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.
Meanwhile, in the care sector Amazon Care will be developing a collection of care homes of between 25,000 ft2 to 70,000 ft2 in size, providing between 25 to 150 suites. Amazon Care are currently developing in Belgravia under the Loveday brand and are in the process of acquiring a number of sites in Zones 2 and 3.