Global asset manager Aberdeen Standard Investments has announced plans to launch a new UK-listed logistics investment trust next month.
The new company - Aberdeen Standard European Logistics Income PLC - aims to raise £250 mln (€278 mln) in an Initial Placing on the London stock exchange. It expects to fully invest the proceeds within 12 months, Aberdeen Standard said.
The trust will be managed by Evert Castelein from Aberdeen Standard’s Amsterdam office and will invest in European logistic properties such as large ‘big box’ ultra-modern warehouses and local ‘last mile’ distribution centres. While the company will invest directly in property, it will qualify as a closed-ended investment trust listed on the London stock exchange, offering investors liquidity through the secondary market.
'The European logistics market is already sizable but developing fast as e-commerce expands over the next three years, outpacing the UK and creating demand for new large distribution warehouses across the region,' commented Andrew Allen, global head of real estate investment research, Aberdeen Standard Investments. '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.'
The company will target a distribution yield of 5.5% per annum, predominantly in the form of dividends, and a total return for investors of 7.5% per annum (both in Euro terms).
Andrew Creighton, head of real estate continental Europe, Aberdeen Standard Investments (pictured) added: 'We have considerable resources on the ground across Europe, allowing us to buy assets in a range of countries and construct a truly diversified portfolio of properties. Investment opportunities range from major distribution hubs for online giants, to single warehouses close to urban areas as customers demand faster delivery of goods.'
