German logistics specialist Palmira Capital Partners has unveiled plans to launch a €500 mln pan-European logistics fund which is expected to hold the first closing by year-end.
German logistics specialist Palmira Capital Partners has unveiled plans to launch a €500 mln pan-European logistics fund which is expected to hold the first closing by year-end.
Speaking to PropertyEU during the EXPO REAL trade fair in Munich, Palmira’s CEO Alexander Hoff said that they plan to raise around €300 mln of equity from local and foreign institutional investors. ‘We hope to raise €120-140 mln of equity at first closing to be carried out before Christmas,’ Hoff said.
The fund will look for core assets as well as value-add investment opportunities across Continental Europe with lot sizes ranging between €20 and €40 mln. About 50% of purchases are planned to be closed off-market, according to Hoff. ‘Germany is the most competitive market in Europe for logistics real estate and it is not easy to find opportunities, especially today.’
In the recent past, the asset class has moved from being a niche sector to a mainstream investment for institutions in search of higher-yielding assets, he noted. ‘This has certainly brought more institutional investors to the table, which of course is a positive factor for our fundraising activities. On the other hand it also means more competition.’
Palmira is an independent asset manager active in Germany, Italy, Spain, France, the Benelux and Poland with assets under management of around €500 mln. The company plans to expand to the UK market at a later stage, Hoff added, with the intention to potentially enter Czech Republic and Hungary in the future. Palmira recently hired two former Prologis executives to lead its expansion in the Benelux and the Southern European regions.
