Aberdeen Standard Investments plans to raise £250m (€278m) on the London Stock Exchange by floating a new UK investment trust to target European logistics properties.
Aberdeen Standard European Logistics Income will look to tap into the rapid growth of e-commerce across Europe by investing in logistics properties such as large, ‘big box’ warehouses and local ‘last mile’ distribution centres, the asset manager said today.
Evert Castelein will be the lead manager for the new logistics investment company, supported by assistant fund managers Rose Braithwaite and Attila Molnar, and global head of research Andrew Allen.
Occupier demand is strengthening and the assets typically benefit from long-term, inflation-linked leases, providing solid rental income alongside potential capital growth, Aberdeen Standard Investments said.
The proceeds of the equity fundraising are expected to be fully invested within 12 months, it said.
The company will target a distribution yield of 5.5% per annum, predominantly in the form of dividends, and a total return of 7.5% per annum.
The company will invest directly in property, but it will qualify as a closed-ended investment trust listed on the London Stock Exchange, offering liquidity through the secondary market.
Andrew Allen, global head of real estate investment research, at Aberdeen Standard Investments, said: “The European logistic market is already sizeable but developing fast as e-commerce expands over the next threee years, outpacing the UK and creating demand for new large distribution warehouses across the region.
“At the same time, as population growth rates rise in key European cities, competition for land intensifies-prompting a ‘race for space’, particularly for last-mile delivery on the outskirts of towns and cities.
“The new trust will exploit this supply-demand imbalance in the sector, as we believe this will support rental income and fuel growth.
“Europe will also benefit from on-going progress in the global trade and an evolution in the way goods are manufactured, sold and distributed in a more integrated way, driven by that major players such as Amazon, and couriers like DHL and Fedex.”
Aberdeen Standard Investments expects shares to begin trading on the London Stock Exchange in the second week of December.