Infinium Logistics, the pan-European asset management and logistics solutions business, announces that it has completed the acquisition of an EV charging facility let to Amazon in Banbury for £28m from Paloma Capital. The deal represents the second site secured for Infinium’s property investment platform – the world’s first dedicated EV fleet charging real estate fund.
Set in a prominent location close to the centre of Banbury and 1.7 miles from the M40 at Junction 11, the site sits on a principal arterial route between London and Birmingham. Arranged over 14.34 acres, the property comprises a 200,000 sq ft warehouse operated as a 588-space EV-ready fleet parking facility and let to Amazon, as well as a long-let Starbucks drive-thru. The deal represented a rare opportunity to acquire a core South-East distribution warehouse and EV car park which Amazon has invested in, together with further asset management potential.
Paloma Capital acquired the asset in 2018 for £5m and subsequently invested a further £9m in the project. This involved the comprehensive refurbishment of the existing warehouse building, as well as the redevelopment of an obsolete office building into a 250 space car park on the adjoining factory site, thereby releasing a further 4 acres to accommodate an EV charging yard and a Starbucks drive-thru. The asset now produces an income of £1.54m per annum.
In partnership with GreenPoint Partners, Infinium’s property investment platform is targeting a £500 million portfolio of assets. The platform will invest in FleetHubs, a new sustainability-focused asset class which combines commercial real estate and low carbon energy infrastructure to drive efficiencies, create a better working environment for last mile delivery service providers and combat climate change. It expects to deploy capital into the market over the next two years as it supports the energy transition of commercial transportation.
The platform’s first major investment was in Swindon, and it currently has an extensive pipeline in advanced discussion through which it looks to develop a portfolio of electrified FleetHubs in key industrial locations across Europe. It is targeting brownfield sites of over 2 acres within ten minutes drivetime of clients’ major occupational requirements and with excellent grid connection or capacity.
Joe Froud, Co-founder of Paloma Capital, commented: “When we acquired the site, the vendors had proposed a retail-led redevelopment of the whole site. We are really pleased to have not only devised an imaginative “low carbon” re-purposing of the original building, but also ultimately ended up creating a substantial EV charging park, assisting Amazon with the de-carbonisation of its delivery fleet.”
Tom Gough, Investment Director, Infinium Logistics, commented: “With a lease to a key tenant in Amazon, with whom we deepen our existing relationship, the property provides immediate income for our investors alongside a medium-term opportunity to add value through asset management.
“This acquisition demonstrates our ability to think outside of the (big) box and transact in a period of general market uncertainty. We look forward to working with market participants to acquire additional c.5-acre sites near major urban centres where we can develop specialised van-charging infrastructure that enable our tenants to transition to electric vehicles.”
Phil Bayliss, CEO of Europe, Infinium Logistics, said: “This addition to our growing portfolio encapsulates Infinium Logistics’ ambitions to decarbonise, electrify and optimise the last mile delivery sector. This site provides critical EV infrastructure that will accelerate the transition away from ICE vehicles whilst also optimising and improving Amazon’s operations in the area.”
CBRE advised Paloma Capital on the sale.