NEW YORK and LONDON, May 16, 2024 /PRNewswire/ -- Modal, a London-based investment and management firm that specializes in the acquisition and management of Industrial Outdoor Storage ("IOS") assets, and Centerbridge Partners, L.P. ("Centerbridge"), a leading global private investment firm with deep experience in real estate, today announced the formation of a joint venture (the "Joint Venture") focused on acquiring IOS properties across the United Kingdom ("U.K."), in addition to the Joint Venture's inaugural acquisition of a 7.4-acre site in Trafford Park, Manchester.

The Joint Venture will invest in IOS properties that provide storage space for vehicle parking, containers, trailers, construction materials, machinery, and other goods. Target markets for the Joint Venture include infill locations around major cities and key logistics nodes in the U.K. IOS properties are a mission-critical component of supply chains, benefiting from similar demand tailwinds as traditional industrial and logistics real estate assets. The limited supply of IOS sites has been further reduced over the past decade due to the development of many such sites into traditional warehouses or residential properties, resulting in low vacancy and rising rents.

Centerbridge is making this investment from its second real estate fund, which has $2.3 billion in capital commitments.

"By partnering with the Modal team, we will have a powerful platform from which to capitalize on the attractive fundamentals of the sector and build a market leading IOS portfolio in the U.K.," said Steve Skaar, Senior Managing Director at Centerbridge.

"IOS assets play a crucial role in supply chains and the broader logistics ecosystem. We see tailwinds in the sector as growing tenant demand meets limited supply. We are delighted to partner with the Modal team, and we look forward to building an institutional IOS portfolio together," added Nico Papamichael, Managing Director at Centerbridge.

Nicholas Schiloff, Managing Partner at Modal stated, "We are thrilled to team up with Centerbridge, whose extensive experience and proven success in real estate investing, particularly in the IOS sector, perfectly complement our strategic objectives. As a dedicated IOS manager, we believe there is an exciting opportunity to create a portfolio of scale and quality in a sector that benefits from uniquely strong fundamentals."

Eastdil Secured served as Modal's exclusive financial advisor.

About Modal

Modal is a London-based investment manager that specializes in the acquisition and management of IOS assets across the U.K. and Europe. Founded in 2023 by alumni of Blackstone and M7, the company is exclusively focused on acquiring and optimizing outdoor storage facilities strategically located in close proximity to major transportation hubs and dense metropolitan areas. Modal aims to build one of the largest pure-play platforms in IOS, a sector that has seen increased tenant demand, alongside a significant reduction in overall stock due to conversion of sites for alternative uses. For more information, please visit www.ModalProperty.com.

About Centerbridge

Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines — Private Equity, Private Credit and Real Estate — in an effort to develop the most attractive opportunities for our investors. The Firm was founded in 2005 and, as of December 31, 2023, has approximately $38 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies. For more information, please visit http://www.centerbridge.com|LinkedIn.

Media Contacts:

Modal
info@modalproperty.com

Centerbridge Partners
Jeremy Fielding / Anntal Silver / Daniel Hoadley
CenterbridgePartners@kekstcnc.co

 

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SOURCE Centerbridge Partners, L.P.

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