LIP Invest expands institutional fund business with logistics real estate

Germany-focused logistics investor LIP Invest (LIP) has closed a fund at €175 mln and launched another which has raised €125 mln at its first closing.


LIP Logistics Fund – Logistics Germany I launched last year and is fully subscribed. The fund is 90% invested in 10 properties with a value of around €225 mln. Two more purchases with a combined value of around €50 mln are underway.

The new fund, LIP Real Estate Investment Fund – Logistics Germany II, launched this month, with a club deal involving three German insurance companies and two pension insurance carriers, and stands at €125 mln.

The fund will eventually invest between €350 - €400 mln in high quality logistics real estate in established and up-and-coming locations, said LIP. Planned total investment is between approximately €350 and €400 mln.

The first asset has been acquired in a €30 mln transaction, with another to follow by the end of the month which is earmarked to be a €40 mln new-build.

Commenting on the success of fund I, Bodo Hollung, partner and managing director at LIP, said: ‘We were very happy with the widespread interest in our fund from banks and savings banks, pension funds and schemes, and Family Offices. As well as giving us recognition of our success over the past few years, it is also an enormous incentive for the work ahead of us.'

‘Investors appreciate the close personal relationship. Our proximity to the market, reliability and speed allows us to always meet our customer’s requests for capital call. This is why I’m so pleased that a number of clients from previous partnerships have once again placed their trust in us.’

'Sustained developments, such as booming e-commerce, the continued trend to out-source logistics services, ever-shortening product cycles with a lower level of vertical manufacturing, will determine the demand for logistics space in the next few years, if not decades.

‘Germany will always play an important role in a world of global logistics due to it central-European location, the size of the population as well as its top logistics performance worldwide.’


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