European logistics real estate specialist Verdion has announced initial closings totalling €75 mln for its second value-add fund, Verdion European Logistics Fund 2, sourced exclusively from investors in the first vehicle of the VELF fund series.
VELF2 is targeting equity commitments of €400 mln for its value-add strategy to reposition existing assets into future-proofed core properties in established Northern European logistics locations. VELF2 expects to have total investment capacity of over €800 mln when combined with leverage.
Verdion’s first fund VELF1 reached final close in 2020, having raised €158 mln.
VELF1 is now fully invested and, together with debt, has deployed €310 mln on the acquisition and enhancement of eleven logistics assets across Germany, the Netherlands, Denmark and the Czech Republic.
Recent highlights include commencing speculative development at Verdion PremierPark Ludwigsfelde, a €100 mln urban logistics park 35 minutes from Central Berlin, with completion planned during 2024 and the completion of a newly-built €35 mln logistics asset in Nettetal, Germany, adjacent to Venlo and the Dutch border, which was fully leased to Advanced Supply Chain (ASC) prior to practical completion in July 2023.
Simon Walter, executive director – investment management, at Verdion, said: 'With the continued supply-demand imbalance in key European logistics markets, we are seeing strong interest for this strategy from investors. VELF2 will build on the success of our first fund, in leveraging the expertise of Verdion’s vertically-integrated, in-market teams to identify a range of existing properties that we can reposition into high quality logistics assets with excellent ESG credentials.'