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Refurbishment focus for new development company

02 April 2024

A newly launched real estate company will focus on refurbishment and redevelopment of existing industrial and logistics stock rather than greenfield development.

By Liza Helps Property Editor Logistics Matters

ARKUS REAL Estate Capital launched by former co founder of real estate investment vehicle Oxenwood, Jeremy Bishop, will focus on repositioning obsolete and out-dated property across the UK into Grade A, highly sustainable, fit-for-purpose industrial and logistics assets.

The idea is that the firm will seek to take advantage of the pricing reset caused by the convergence of 2023’s soaring interest rates, the impact of technology on logistics, office and retail real estate, and continued demand for best-in-class ESG standards shaping occupier and investor requirements.

Arkus intends to raise capital from institutional and family office investors from the UK and overseas. While initially Arkus will acquire existing, income producing industrial real estate that is at risk of obsolescence, its intentions include becoming more agnostic, acquiring assets for change of use.

Targeting the areas with the greatest supply-demand imbalance and long-term tailwinds, Arkus’ strategy will explore only sites in specific UK locations and where there is adequate power supply to meet the demands of modern logistics businesses.

Founder and CEO of Arkus Real Estate Jeremy Bishop said: “During the last 10 years there has been a profound dislocation in property markets, setting the scene for a substantial volume of repositioning and redevelopment opportunities.

“With interest rates likely to remain higher than the recent norm, Arkus Real Estate is focused on strategic stock selection; making investments where we can drive returns through asset and development management to create portfolios of high quality assets, generating recurring and growing income streams.”