Munich-based logistics property specialist LIP Invest said on Wednesday that it is launching a new core-plus real estate fund focused on German logistics assets.
The vehicle – LIP’s third such structure over the past three years – is seeking to raise around €320 mln of capital from both new and existing investors, with several institutional investors already committed to invest in the fund.
A first acquisition in an attractive Bavarian logistics region is currently in the due diligence process, LIP Invest said.
‘Logistics Real Estate is proving to be an anchor in the crisis for many investors,’ said Bodo Hollung, partner and managing director of LIP Invest, adding that global investors are feeling more and more comfortable with the sector thanks to the combination of stable value and reliable rental income.
Also, Hollung expects that the trend towards a reversal of globalisation, which began a number of years ago, will likely be further accelerated by the Corona crisis. ‘In particular, sectors such as the automotive and pharmaceutical industries will have a greater need for storage space closer to production sites as a result of the expected partial relocation of supply chains.
'In addition, it can be assumed that the already high growth in online shopping will increase more quickly as a result of changes in purchasing habits, which are now accompanied by a high demand for space,’ he noted.
LIP Invest launched its first logistics property fund in 2018, with final closing reached at end 2019 with €190 mln of equity. It invested a total of €340 mln of capital in German logistics property assets.
Fund II was launched in 2019 and held its last closing with equity of €260 mln. The fund is nearly fully invested, having bought €425 mln of assets.
Fund III will focus on locations especially suited for logistics with sustained demand for space as well as on properties with rent growth and value creation potential. By refraining from purchasing portfolios, the fund will seek to reduce risk through choosing a range of assets, varying property types, lease terms and logistics segments.
