Despite difficult conditions throughout 2022, with the outbreak of war in Ukraine affecting supply chains and prices, alongside several interest rates hikes and multiple governments adding to uncertainty, our client, abrdn’s AIPUT [Airport Industrial Property Unit Trust] reported a successful past year.
Speaking to Insider Media recently, AIPUT’s Fund Manager Nick Smith took stock of 2022, its international, political and economic challenges, and the significant steps forward taken by the specialist fund:
“Of course, there was turbulence along the way. Putin’s War has affected supply chains and the pricing of energy, materials and labour. Added to this was ever-increasing interest rates and ever-changing government administration, all adding to price uncertainty. However, with a strong, diversified asset base, sound management and an eye fixed firmly on the future, we continue to be one of the best-performing AREF funds.”
Strong growth early in the year for AIPUT was marked by the completion of their state-of-the-art 360,000 sq. ft ‘dnata City East’ air cargo warehouse location in Heathrow, built to spec for the airport services provider. Followed by publication of the fund’s market-leading ‘Pathway to Net Zero’ strategy, with the objective to fully decarbonise the operations of the fund and its real assets by 2040, and the signing of a £350million debt facility agreement with Wells Fargo Bank, the fund made great strides towards its ESG goals in the year to 2023.
In the year ahead, AIPUT is looking towards diversification and decarbonisation, using the gains made in 2022 as a solid foundation to expand and improve its portfolio of industrial real estate assets in and around UK airports. To read more about Nick’s insights and AIPUT’s plans for 2023, head to Insider Media and read Matthew Ord’s profile: ‘Insider Media – Industrial Real Estate Firm Outlines ‘Big Focus’ for 2023 After Strong Year’.
