Savills and Vestas raise €200m from Korean investors for European sheds

The Vestas European strategic allocation logistics fund (VESALF I) will target core/core-plus logistics assets of between €40-€140 mln across all key European markets.

The launch follows over €1 bn of acquisitions in Europe by Savills IM on behalf of Vestas IM over the last three years.

Jon Crossfield, head of strategic partnerships, Savills IM, said: 'Having advised and worked closely with Vestas for several years, we are delighted that the relationship has now led to us jointly establishing the first blind logistics fund for Korean institutions.

'It is a key milestone for both of our firms, and a clear sign of how the Korean market is maturing. Institutions are increasingly willing to back partners they trust, to better access stock in competitive markets and to achieve greater portfolio diversification.'

Savills IM will be the European fund and asset manager in partnership with Vestas IM. The €200 mln raised, combined with manager co-investment and up to 60% gearing, will give the fund a target gross asset value of €450-500 mln, Savills IM said.

The fund will be seeded with the recent acquisition of a new 115,000 m2 unit leased to DSV in Tholen, the Netherlands.

Salvatore Lee, managing director, Vestas IM, added: 'We are very pleased to set up this blind logistics fund with our key partner Savills IM and to be able to bring a valuable new product to our proactive Korean investors in such a dynamic and competitive logistics market.

'This is a big step for Vestas and builds on our five-year history of overseas investments. We are very grateful to the Savills IM team who have supported and are now partnered with us. We are excited to continue deploying the capital on behalf of VESALF I over the next two years.'

Ashurst advised on the formation of the partnership between Savills IM and Vestas IM as well as advising on the acquisition of the seed asset.