Singapore-based alternative asset management firm Elite Partners Capital has announced the first close of its pure-play Elite Logistics Fund, which has a target size of €150 mln.
Initially launched in January, the vehicle seeks investment opportunities across Europe’s logistics markets.
Elite Partners did not mention the amount raised in the first close but said the fund will hold more than four million sq ft (371,000 m2) of logistics assets in Poland and the UK.
The Polish assets are in Warsaw and Gdansk, near the largest deep-water container port terminal in Poland operated by PSA The UK assets are in key logistics hubs with direct access to main motorways. All properties in the portfolio are freehold or virtual freehold and leased to large multinational corporations with strong tenant covenants and long average weighted unexpired lease term of approximately five years.
The first close followed the listing of the first sterling-dominated REIT – Elite Commercial REIT – on the Singapore Exchange in early February. Elite Commercial REIT has an initial portfolio of 97 properties across the UK.
Enoch Tan, portfolio director of The Logistics Fund, said: ‘Rapid urbanisation and changing consumer behaviour has propelled a strong demand for logistics services in Europe. Poland has emerged as a major logistics player along with the UK, where the sector is relatively well established. We have confidence in the fund as logistics assets tend to provide more stable and defensive yields and are less sensitive to volatility and economic disruptions.’
Mr. Victor Song, CEO of Elite, said: ‘Elite Partners Capital has a proven track record of uncovering unique investment opportunities and providing diversified exposure to our investor clients. We have proven this with the successful launch of the Elite Commercial REIT. The addition of a pure play logistics portfolio in Elite’s stable of funds offers investors access to a new and exciting asset class.’