Munich-based logistics specialist Realogis is in exclusive talks on five investment transactions totalling €75 mln for its first institutional fund focused on the German market.
Munich-based logistics specialist Realogis is in exclusive talks on five investment transactions totalling €75 mln for its first institutional fund focused on the German market.
Realogis Logistics Fund - Germany raised €100 mln in equity commitments at its first close from insurance companies, pension funds and German savings banks (Sparkassen).
The fund has a full pipeline of 20 potential deals - including the five in exclusivity - with a total volume of €275 mln. Realogis expects the fund to be fully invested by mid-2016.
Real Estate Logistics Fund-Germany invests in new, modern logistics properties that have the potential to be utilised by third parties and that are located in established locations nationwide. It also invests in existing properties in outstanding locations with a high potential for attracting long-term tenants.
The fund is interested in acquiring assets early in their development phase as part of forward purchases or forward funding agreements. The targeted yield – despite the decline associated with new development – is over 7% annually, for an initial term of ten years. The fund aims to deliver an IRR of 8%.
Bodo Hollung, managing director of Realogis Real Estate, said the fund is seeking to raise a further €50 mln before year-end to give a gross investment volume of €250 mln once debt is added.
Realogis, he added, is also expanding its team in preparation for the launch of a second logistics fund once the first is fully invested.