LIP Invest, the Munich-based logistics investor, has unveiled its third logistic property fund, Logistics Germany III.
Like its predecessor funds, it will target the Core+ risk class. According to LIP, Logistics Germany III represents its third new industrial fund since 2018.
'Logistics real estate is proving to be an anchor in the crisis for many investors. The trend towards a reversal of globalisation, which began a number of years ago, is likely to be further accelerated by the Corona crisis,' said says Bodo Hollung, partner and managing director of LIP Invest.
'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,' Hollung added.
The fund series' first fund, launched in 2018, completed its final closing at the end of 2019 with €190 mln in equity, following additional investments from existing investors. With 14 property purchases and an investment sum of around €340 mln, it executed its final deal in Fürth in April 2020.
The second fund, Logistics Germany II, launched in 2019 and completed a final closed with equity of around €260 mln. Including pipeline acquisitions, the second LIP fund has already invested €425 mln and is one more deal away from completion. That means that LIP funds have invested some €800 mln in logistics property since 2018.
'An increasing number of investors around the world are feeling more comfortable with logistics real estate in Germany and the combination of stable value and reliable rental income,' Hollung said.
Logistics Germany III, which is now open to institutional investors for subscription, is in the due diligence stage for its first deal in Bavaria.
In addition to economic objectives, the fund will also pursue aspects of sustainability, social responsibility and corporate governance.
As was the case with the first two funds, LIP said it could draw on a real estate pipeline with a current value of €400 mln due to its good market access, allowing for a quick release of capital.
