LGIM’s Industrial Property fund raises €175m to finance new projects

LGIM Real Assets, on behalf of the Industrial Property Investment Fund, announced on Thursday that it has completed an equity raise, as it continues to identify value add and purchase opportunities across the UK.

The fund has completed an over-subscribed £150 mln (€175 mln) equity raise, which received significant support from both the firm's existing investor base as well as from non-UK investors looking to seize the opportunity to access a high performing segment of the market via a trusted vehicle.

The fund, with a portfolio approaching a value of £3 bn, has over 20 development projects in the pipeline which will provide new urban logistics, trade developments and self-storage accommodation. The raised capital will largely be deployed to finance these projects, creating modern, fit for purpose stock, with strong performance and ESG credentials. Targeted acquisitions are also being undertaken, the company said in a statement.

Michael Barrie, director of fund management, LGIM Real Assets, commented: 'Beyond meeting our capital raising target we saw interest above the £150 mln objective, highlighting the robustness of the Fund as well as the buoyancy of the sector. We’re delighted to have met the target so swiftly, which is not only significant in diversifying our investor base, but also key in accelerating IPIF’s strategy to ensure the portfolio is fit for the future market. Alongside delivering stable returns for its investors, all new IPIF developments will target zero enabled carbon, aligning with LGIM Real Assets wider ESG and Net Zero commitments.'

Given the continued strength of the industrial sector, the Fund is targeting a significant proportion of its new investment on value creation opportunities, according to Jonathan Holland, senior fund manager, LGIM Real Assets. 'This is primarily speculative development in and around main population centres, of which we have a strong pipeline. We have already seen significant occupier interest in our future projects, with over 50% being currently let or under offer.'


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