Quilvest Capital Partners (“Quilvest”), a global private investment firm, and Axis IOS (“Axis”), a real estate investment platform headquartered in Atlanta, have launched a joint venture (the "Joint Venture”) to acquire and operate an approximately $500 million portfolio of Industrial Outdoor Storage (“IOS”) properties across the United States.
The IOS sector in the US presents a compelling market opportunity, driven by long-term trends including onshoring of manufacturing, the rise of e-commerce, infrastructure investment, as well as the shrinking supply of outdoor storage caused by a boom in warehouse construction. IOS represents a critical link in the industrial and logistics supply chain, benefitting from demand by a diverse set of industries and users across the transportation, logistics and construction sectors as users seek ways of mitigating supply chain disruption and cost pressures, changes in manufacturing and distribution operating models and shifting consumer behavior.
The Joint Venture’s IOS strategy will be to aggregate and operate a portfolio of industrial outdoor storage properties across the US. Acquisitions will be focused within key logistics markets, targeting well-located and functional prime assets poised to take advantage of growing user demand in the sector.
The Joint Venture initiated its business plan by acquiring its first property– a 16.8-acre site in San Antonio, Texas that is strategically located near key logistics and distribution infrastructure. Value in the property is expected to be unlocked by converting the property from a long-term owner/user to a multi-tenant campus serving heavy equipment rental vendors as well as modular workforce, residential housing, and space rental product suppliers.
"We began investing in IOS in 2021 and are delighted to expand our portfolio in partnership with Axis. Our strategy has been developed to capitalize on the attractive opportunities offered by a growing and critical sector that has demonstrated resilience across market cycles. With the successful completion of our first acquisition, we are confident in the ability to execute on a healthy and growing pipeline of deals."
Barry Hammerman Partner and Co-head of Real Estate at Quilvest
"With our exclusive focus on the industrial outdoor storage sector combined with our team’s significant real estate experience, we are excited to form a partnership with Quilvest to execute in this high-potential sector."
Crawford Arnold Partner and Founder of Axis, commented