GARBE Industrial Real Estate GmbH (“GARBE”), one of the leading specialists for logistics and industrial properties in Germany and elsewhere in Europe, raised approximately 400 million euros in equity among German and international investors for its investment fund, “GARBE Logistics Real Estate Fund Plus III” (“GLIF+III”). The Luxembourg special AIF (SICAV-RAIF) without maturity is an Article-8 fund with a manage-to-ESG strategy. With a planned investment volumes of five billion euros, it is GARBE’s largest pan-European fund for institutional investors to date.
It marks a plausible continuation of the company’s European growth strategy. The new logistics fund invests in established logistics sites across Europe as well as in selected growth regions, in some cases pursuing value-add and development strategies in addition to its main core-plus strategy. Its seed portfolio consists of 22 assets with an investment volume of more than 650 million euros and about 400,000 square metres of lettable area. Located in Germany (21) and Poland (1), the properties show an occupancy rate of 95 percent and a WALT of more than ten years. Meanwhile, over one billion euros worth of assets remain in the pipeline for GLIF+III. A second closing is therefore planned before the end of this year.
The focus of the GLIF+III is on logistics assets in the core-plus segment, with an add-on component of selected core- and light-industrial properties. The strategy is supplemented by property developments and value-add properties. It targets a net cash-on-cash return of 4 percent p.a. and an internal rate of return (IRR) of 7 percent p.a.; institutional investors may buy into the fund with a minimum investment amount of 10 million euros.
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