The Investment Property Databank has launched its first Pan-European Logistics Performance Report, highlighting the emergence of logistics as a distinct asset class.
The Investment Property Databank has launched its first Pan-European Logistics Performance Report, highlighting the emergence of logistics as a distinct asset class.
According to the research, pan-European logistics returns in 2011 amounted to 6.4%, just below the 6.6% delivered by the IPD Pan-European Annual Property Index, ranking second only to retail in comparison to all other sectors.
'IPD's analysis has confirmed long-held expectations about income return in the logistics sector,' said Doug Rowlands, head of Multinational Team, IPD. 'In most European markets in 2011, the income return tended to outperform other property sectors. Logistics also proved to be the highest yielding of all sectors over 1 and 5 years.'
The first performance report for logistics measured 757 assets from 162 funds with a total capital value of EUR 12 bn across 20 European markets.
Sweden saw the strongest performance in 2011, delivering a 10.7% local currency total return, whilst Portugal was the worst performing market, returning 2.9%.
Spain, Italy, the Netherlands and Hungary suffered the most from heavy capital declines, however in the UK, capital values continued to grow at 3.7%.
