Urban logistics platform Crossbay secures €400m debt facility from Citi

posted on 25th January 2021 by Eddie Saunders
Urban logistics platform Crossbay secures €400m debt facility from Citi

Crossbay focuses specifically on single-user distribution centres in locations no more than a 90-minute journey to the centre of the nearest city. Single-tenant assets require less intensive asset management than multi-let industrial units and are less exposed to the performance of the wider economy than larger ‘big box’ warehouses.

The platform’s c.500,000 sq. m. portfolio hosts a high-profile tenant base, counting leading 3PLs such as FedEx and DHL, as well as major e-commerce brands like Amazon, as occupiers.

The last mile logistics sector has seen accelerated growth as a result of the pandemic, with lockdowns making consumers increasingly reliant on online shopping. This has driven both investor and occupier demand for last mile facilities.

Online shopping rates are projected to continue growing in Europe beyond the pandemic.

In Europe’s five largest economies – France, Germany, Italy, the UK and Spain, which are all countries where Crossbay has a presence – the combined value of online sales is expected to exceed €345bn by 2023 according to Mintel.

In Western Europe more widely, where Crossbay is focusing its future acquisitions activity, online sales are expected to make up 15.6 percent of total sales by 2023 according to GlobalData. This is up from just 9.7 per cent in 2019.

Marco Riva, head of Crossbay and logistics at MARK, said: “We believe Covid-19 has fundamentally altered the habits of European consumers and introduced new demographics to online shopping. As a result, even once the pandemic is behind us and footfall in urban retail locations starts to recover, we still expect sustained demand from investors and occupiers for high quality last mile logistics facilities, such as what Crossbay is targeting.

“We aim to maintain the rapid pace of acquisitions that we have managed to date, which has been made possible by our strong network of on-the-ground teams that boast deep local market knowledge.”

In addition to Crossbay, MARK manages other platforms, including rental housing, life sciences and digital real estate.