European logistics real estate developer Panattoni is planning to acquire €600m worth of assets for a newly launched open-ended fund.
The Panattoni Income Fund expects to raise €300m by 2026 and acquire Panattoni-developed and managed assets worth twice that amount.
Panattoni’s owners and management team will also be co-investing in the fund which is being seeded with Panattoni-managed assets in Poland.
Panattoni said the fund intends to acquire stabilised assets and forward-purchase pre-let developments in countries where Panattoni operates, including central and eastern Europe – particularly Poland – and the UK, Italy, Spain, Germany, Austria, the Netherlands and Scandinavia.
Krzysztof Dudek, managing director at Panattoni Income Fund, said: “This is an opportune time to be creating Panattoni’s first income fund. The post-COVID market correction has resulted in yields for industrial and logistics properties becoming more attractive.
“There has been a significant amount of capital waiting on the sidelines for repricing to settle and for more favourable financing conditions. The demand-supply dynamics in the sector continue to be very positive for investors.
“The potential for rental growth is underpinned by limited supply, stemming from land scarcity, regulatory barriers and rising construction costs, coupled with strong, sustained demand for logistics space, driven by e-commerce growth and new manufacturing.”
Daniel Raemy, member of the advisory board at Panattoni Income Fund, said: “Investing in industrial and logistics properties offers a compelling opportunity and attractive long-term returns, bolstered by structural drivers.
“The market is currently experiencing a shortage of supply, coupled with a growing emphasis on ESG-compliant assets, which gives the fund a competitive edge through access to premium projects.”
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