Investors have backed Fiera Real Estate’s Logistics Development Fund UK (FRELD) with around £170 mln (€200 mln) of equity as the company announces it has reached a first close.
The firm is targeting a total of £300m and is a maiden investment vehicle in the logistics sector focussed on development.
The fund has a maximum five-year duration with a two-year investment window, as well as a strong focus on ESG with all projects targeting net-zero carbon construction.
Fiera Real Estate said it was utilising its pan-UK operating network of eight property companies, that provide access to local knowledge and deal flow in all key regions.
Chris Button, portfolio manager, said: ‘Levels of occupier and investor interest for last mile logistics real estate continues unabated and our new logistics fund is well positioned to take advantage of the demand that we are seeing.’
The firm added it hopes to take advantage of the record transitional buying opportunities created by Brexit and the Covid-19 pandemic. ‘The demographic shifts, climate crisis, technological progression and changing customer expectations have been key trends disrupting existing real estate. This has led to the emergence of new opportunities to create real estate that is fit for purpose.’
