German logistics real estate specialist LIP Invest has launched its fifth logistics real estate fund.
Like its four predecessors, the open-ended real estate special AIF LIP Real Estate Investment Fund – Logistics Germany V will invest exclusively in core logistics properties across Germany.
Managed by capital management company IntReal, the fund will increasingly focus on climate protection in its property selection.
Open for subscription by institutional investors, the fund will seek new logistics buildings suitable for third party use in locations with long-term sustained demand for space.
The plan is to acquire 10-15 properties with a minimum investment volume of €350 mln.
Bodo Hollung, partner and managing director of LIP Invest, said: ‘Following the price corrections of the past 15 months and the reluctance of many investors due to the uncertain macroeconomic forecasts, logistics properties are once again at the top of many investors' shopping lists. Plannable rental income, inflation-protected leases and value stability make logistics an attractive investment. The opportunity for value increases is currently higher than it has been for many years. With our large network, our proximity to the market, and our reliability and speed, we are repeatedly able to secure suitable properties for our funds, despite the fierce competition and thus regularly fulfill our investors' desire for a quick capital call.’
To reduce risk, the fund will target different property types, in different geographies and sectors, while at the same time varying property volumes and lease terms, with the leverage ratio at a maximum of 30%.
Besides certification for environmentally friendly construction, all properties are to be equipped with a photovoltaic system, enabling tenants to obtain low-cost electricity.
An approval according to Article 8 of the EU Disclosure Agreement has already been submitted to the Federal Financial Supervisory Authority (BaFin).
More than 60 institutional investors have contributed €950 mln to the four funds over the past five years.
The LIP logistics portfolio now includes 59 properties with a combined rental area of more than 1.2 mln m2 and an investment volume of €1.7 bn.
