Palmira Capital Partners said on Thursday that it has received approval from the German Federal Financial Supervisory Authority (BaFin) for a new investment fund focused on German logistics real estate.
The vehicle is believed to be the first Article 9 logistics property impact fund granted marketing authorisation by BaFin.
GLIF will target a volume of €500 mln including €300 mln of equity and a 4% distribution yield over the ten-year lifetime of the fund. It will invest exclusively in existing German logistics property, with the aim to implement works which will reduce the energy demand by at least 30% and decarbonise the assets within three years. This will comply with the strict requirements of the Disclosure Regulation and EU taxonomy for sustainable economic activities.
The first closing is scheduled for Q2 2022.
Silvio Müller, fund manager of the GLIF, commented. ‘As one of the pioneers in the industry, at an early stage we recognised the importance of structuring logistics properties on a sustainable - and hence future-proof - basis. Our team has worked for over a year on the fund concept, which we also call ‘Manage-to-ESG-Core’. We are very proud to be the first German company to bring a genuine impact fund with logistics real estate to the market for investors.’
‘The individual modernisation concepts include works for energy optimisation, energy generation and storage, and CO2 mitigation. For this, Palmira employs innovative solutions that are tailored to the type of building, use and location. Within three years, the CO2 emissions from the buildings concerned will be reduced to net zero by the optimisations implemented in their operation,’ added Christean Schmidt, head of Sustainability at Palmira.
