Warburg HIH creates German logistics fund

German state bank Nord/LB and Warburg-HIH Invest have announnced plans to launch a new logistics real estate fund called Warburg-HIH Deutschland Logistik Invest, targeting a fund volume of around €250 mln. 

The open-ended special alternative investment fund will invest exclusively in German logistics real estate and aims to have a gearing ratio of 45%, with an expected dividend yield of 4.5-5.5%. Institutional players may invest in the fund by acquiring equity interests of €2.5 mln or more.

'The fund will invest in modern distribution and transshipment centres with alternative use potential, located in established sites throughout Germany,' said Alexander Eggert, managing director at Warburg-HIH Invest. 'The asset value of the properties, which are occupied on long-term leases, ranges from €10-40 mln. It is planned to add some properties with optimisation potential to boost the performance.'

According to Warburg-HIH, logistics is the most important economic sector in Germany after the automotive industry and retailing at the moment. 'The main factors driving the increase in the movement of goods are global economic growth, the increasing product diversity and the rising significance of e-commerce,' said Andreas Strey (pictured), senior fund manager at Warburg-HIH Invest.

'The demand for space generated by these trends is matched by a low floor space supply, the result being that vacancy rates are very low and that rents in the central logistics regions are subject to a stable trend,' Strey concluded.


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