AEW Europe has announced the merger of its three existing logistics funds, creating a €1bn pan-European logistics platform. The new Logistics Fund will own one of the largest logistics investment portfolios in Europe.
The logistics market has been undergoing structural change and consolidation in recent years as logistics providers seek to increase market share and geographical coverage. Third party logistics providers and retailers are increasingly seeking to work with fewer partners who can provide facilities across a number of locations and countries.
Following the merger, the combined portfolio of the Logistis Fund will represent 56 grade A facilities representing 1.6 million sq m across Europe. The market value of the portfolio as at December 2011 was €1bn.
Christian Delaire, Chief Executive of AEW Europe said:
“To succeed in the logistics sector you need critical mass to provide a pan-European offer to occupiers and ensure operational efficiencies throughout the platform.”
The strategy of the Logistis Fund is to invest in Grade A sustainable logistics platforms in national and metropolitan distribution centres. The Fund will target Western European markets, focusing on France, Germany and the Benelux countries.
As part of the merger, new five-year debt facilities have been put in place to fully refinance the existing debt. The Fund will target a loan-to-value ratio of 40%. The Logistis Fund has adopted an efficient structure combining a French OPCI managed by AEW Europe SGP and a Luxembourg company managed by AEW Europe Sarl.
Rob Wilkinson, CIO AEW Europe and Jean Lavieille are responsible for AEW Europe’s logistics team with Rémy Vertupier acting as Portfolio Manager and Luc Bordereau as Head of Fund Operations.
* Source of information, here.