Hansainvest boosts logistics exposure in face of downturn

German fund manager Hansainvest is increasing the share of logistics in the portfolio of its Hansaimmobilia open-ended property fund as a hedge against the potential effect of the global downturn on other real estate segments.

As part of this strategy, Hansinvest has added the Finnish logistics park it acquired in September for EUR 31 mln to the fund. The property is used as a warehouse in the wholesale sector and is fully let for the next five years.

The compound, which extends over a usable area of about 20,000 m2, includes three buildings of identical size, of which the second one was just completed and added to the fund assets. The third building will be transferred to the fund portfolio following its completion in the summer of 2009.

Hansainvest said prices for logistics real estate in the Helsinki metropolitan area have remained virtually unaffected in spite of the global financial crisis. The vacancy quota for warehouses continues to hover between 2-3%. 'For us, this confirms that we made the right choice when looking for secure investments,' said Ralph Petersdorff, fund manager of Hansaimmobilia.

'In order to enhance the risk diversification in the fund portfolio further, we are planning to raise the portfolio's logistics real estate quota from 12% at present to 20% in the future,' fund manager Ralph Petersdorff went on to say. He added that the acquisition of the logistics park is an important step toward this goal.

The company made its first Finnish acquisition for the fund in 2007 when it bought the Kone Building in Helsinki for EUR 35 mln. The Hansaimmobilia fund has a volume of EUR 500 mln and Hansainvest said it has a 'sound liquidity quota' of 20%.