Quanta Capital launches €300m fund focussed on logistics sale and leaseback deals

Quanta Capital, a leading Irish property investment fund, is launching a new €300m fund targeting sale and leaseback deals in the logistics sector in Ireland.

The fund is aimed at SME owners of logistics properties and warehouses used to serve their businesses who may be looking to free up capital for their retirement, or simply to de-risk their exposure to the property market.

Quanta will have a flexible approach to lease terms and rents, creating a bespoke deal structure to suit an individual’s need. In an environment where credit lines for SMEs from mainstream banks are constrained, this provides an alternative route to access cash to invest in growth, it also has tax benefits as sale and leaseback lease expenses are fully tax deductible.

Mel Sutcliffe, Chief Executive of Quanta Capital said: “Having had experience of running a large distribution business I know that most SME owners are more interesting in using capital to grow their business rather than tying it up in a property asset. Our sale and leaseback proposal can help unlock this to provide growth finance. It also gives an option to businesses that may be unable to extend credit lines with the mainstream banks, or to business owners looking to free up money for their retirement. We have already funded several deals, and we plan to deploy the balance of the fund by the end of this year.”

Quanta has a total of €1bn in assets under management, and its existing portfolioincludes 3m sq. ft. of logistics assets, making it one of the largest logistics investors in Ireland. Quanta also has 500,000 sq ft of offices, and holds data centre investments with capacity to deliver 1.2m sq.ft. of space

The €300m fund reflects a pivot following Quanta’s decision not to proceed with a full takeover bid for Yew Grove Reit last year after building up a 5% stake. Quanta is backed by Oaktree Capital Management.

Quanta has already seeded the fund with 12 deals this year for a total of €85m. Quanta has come across several business owners who have decided to accelerate their retirement post-Covid, and to sell on their business to the management team who have been unable to raise finance. The sale and leaseback transaction allows the owner help finance the deal.

Quanta expects the majority of the fund to focus on logistics assets but will also look at investing in opportunities in the office and retail sector.