Apollo Global Management has appointed Valor Real Estate Partners as asset manager for a 2.5M SF portfolio of prime infill logistics assets across 11 metropolitan European centres.

The 24-asset portfolio is a mix of standalone urban warehouses and small urban estates, all in proximity to large population centres, with a tenant base that comprises a mix of e-commerce operators, third-party logistics providers, parcel delivery firms and light industrial occupiers.

Valor said it will undertake a phased, sustainability-led refurbishment and redevelopment programme across some of the assets for last-mile distribution facilities.

The portfolio was aggregated by Apollo-managed funds between 2020 and 2022 as part of its investment strategy into urban logistics in supply-constrained locations.

The UK logistics markets saw resilient demand in 2025 as leasing volumes increased by 22% year-on-year, according to CBRE.

Net absorption also posted an uptick in 2025, totalling 11.4M SF, and CBRE said it expected occupier demand to remain consistent in 2026, with occupiers still looking to expand and the strongest net absorption and rental growth in the north-west and Yorkshire/north-east, which it anticipates will see further rental growth this year.

In 2025, net completions outstripped net absorption, with strong levels of speculative supply and increases in secondhand availability pushing UK vacancy rates up to 7.1% in the fourth quarter. In 2026, net absorption is forecast to match net completions, reducing vacancy rates.

“This is a standout pan-European last-mile logistics portfolio by location and tenant quality, offering a rare combination of stable day one income and significant reversion,” Valor partner and Head of Asset Management Brad Stitchberry said in a statement. “The structural growth, driven by e-commerce, coupled with an increasingly acute undersupply of ESG-compliant space, is underpinning its attractive rental and capital growth prospects.”

“Urban logistics remains one of our high conviction investment themes across Europe,” Apollo partner Frederick Neske added. “Consolidating the management of this portfolio with Valor is the next step of our business plan, as we seek to deliver excess return per unit of risk and execute on a long-term hold strategy in a higher-for-longer rate environment.”