RLI Investors is taking steps to raise a second fund, the company's founder and managing director Bodo Hollung told PropertyEU.
'A lot of banks are looking for alternative investments and we find that the German Sparkasse are enthusiastic about investing with us,' he said.
RLI’s first fund, ‘RLI Logistics Fund - Germany I’, was launched alongside IntReal International Real Estate at the end of 2015. Having raised €200 mln in equity, the fund successfully started its investment phase with a warchest of €350 mln in early 2016.
RLI has already seen its assets under management reach €280 mln and Hollung expects to close on another €100 mln by the end of October alone.
‘This makes RLI one of the biggest investors in Germany's logistics real estate market this year. We were also more than happy to take advantage of opportunities to initiate further deals at Expo Real.’
Hollung said he expects the first fund - Germany I - to be fully invested by the end of the year.
Focus will remain on Germany
A month after rebranding German logistics investor Realogis as RLI Investors, Hollung believes that the only way is up for the logistics sector.
'Three global mega trends – globalisation, outsourcing and e-commerce – all require logistics players to be at the top of their game,' Hollung said.
'But these trends mean growth. E-commerce is up 10% in Germany this year and total volumes have already reached €46 bn in 2016. Which is why I also strongly believe in the development of new stock over the next decade.'
RLI's main focus is location, Hollung said. 'Location location location is a common mantra but it's essential for logistics. We don't care about long lease contracts, we know we can always relet our properties due to where they are. We’re also happy to work with no-name regional tenants rather than big names for that reason.'
He added: 'Our other focus is the quality of the property, and the right sizes for our tenant types.'
Hollung is convinced by the German market and can't see RLI going further afield. ‘I know this market incredibly well,’ he says. 'In the past, I’ve invested in the Netherlands and the UK and I know how complicated it can be.
'Germany is Europe's biggest logistics market - more than twice the size of second-placed France - so it's the right place for our business model,' he concluded.
