#London #United Kingdom #Apollo Funds #Centerbridge #Modal Partners

Modal Partners with Centerbridge for Major IOS Financing

In a groundbreaking development for the Industrial Outdoor Storage (IOS) sector in the U.K., Modal, a London-based investment firm, has partnered with Centerbridge Partners, L.P. to secure significant financing from Apollo-managed credit funds. This deal, announced on July 2, 2025, represents the first large-scale financing dedicated specifically to a U.K. portfolio focused exclusively on IOS assets, which is a rapidly growing market driven by increasing demand for such storage solutions.

The deal comes on the heels of Modal's impressive growth over the past year, establishing the firm as a prominent player in the IOS management landscape. By obtaining this financing, Modal aims to bolster its operations and continue expanding its portfolio, which reflects the ongoing need for high-quality storage facilities near major transport links and urban areas.

Industry Insight

Nicholas Schiloff, Managing Partner at Modal, expressed his enthusiasm regarding the partnership with Apollo: “We are thrilled to announce this lending alliance. This transaction is one of the largest in our sector and facilitates the execution of our growth strategy alongside Centerbridge.” The sentiment was echoed by Nico Papamichael, Managing Director at Centerbridge, who acknowledged the progress made over the past year in scaling their IOS portfolio across the U.K. and emphasized the importance of this financing in their joint venture with Modal.

Ben Eppley, a Partner and Head of Real Estate Credit, Europe at Apollo, remarked on the increasing demand for IOS assets and the firm’s commitment to financing future growth in this sector. He indicated that aligning with both Centerbridge and Modal will help facilitate the ongoing expansion of their high-quality storage portfolio.

Background on Modal

Founded in 2023, Modal stands out as a specialized investment manager focused on the acquisition and management of IOS assets throughout the U.K. and Europe. The firm was established by veterans of Blackstone and M7, aiming to create one of the largest platforms in the growing IOS sector. Modal targets the acquisition of outdoor storage facilities that are strategically located, benefiting from proximity to key transportation hubs and metropolitan areas. With the current market witnessing a significant decrease in available storage due to the conversion of sites for alternative uses, Modal has positioned itself to capitalize on the increased demand from tenants.

Centerbridge Overview

Centerbridge Partners, L.P., on the other hand, is a private investment management firm that takes a multifaceted approach across various investment disciplines, including Private Equity, Private Credit, and Real Estate. The firm was established in 2005 and manages approximately $41 billion in capital, making it a formidable presence in the investment space. Centerbridge focuses on forging partnerships with leading management teams within targeted industries and geographies, underscoring its commitment to high-quality investment opportunities.

This landmark financing marks a significant milestone for both Modal and Centerbridge as they continue to navigate the evolving landscape of the IOS market. With the help of their advisors—Simpson Thacher & Bartlett LLP, Gowling WLG, Deloitte LLP, and Conduit RE—they are well-equipped to move forward with their ambitious growth plans. Meanwhile, Apollo’s involvement signals confidence in the IOS market and its potential for long-term investment returns.

In conclusion, as the demand for Industrial Outdoor Storage continues to rise, Modal and Centerbridge's strategic partnership with Apollo could prove to be a game-changer in the sector, promoting innovation and improved offerings in the storage market.