ELITE LOGISTICS FUND I

About

Pan-European logistics-focused fund, currently invested in 18 quality big-box logistics assets strategically located across Poland, Germany, Spain, Czech Republic and United Kingdom (UK). The portfolio which comprises predominantly freehold or virtual freehold assets are located in attractive logistics markets with good connectivity to transportation nodes, and are fully leased to a diversified blue-chip tenant base. In addition, the portfolio has a specific focus on logistics assets falling within one or more of the three themes which we have identified to have the best growth potential and/or are defensive in nature: ecommerce; food distribution/cold storage and transportation hubs.

The global logistics real estate has emerged to become an attractive and resilient asset class. The pandemic has accelerated pre-existing positive structural trends – including continued e-commerce expansion, evolving consumers’ expectations and greater focus on supply chain resilience– which will continue to support demand for modern and prime logistics assets globally. In Europe, these positive tailwinds, coupled with a tight supply, present attractive growth opportunities.

The Elite Logistics Fund I which focuses on prime European logistics assets in the high-growth and defensive sectors provide investors with a unique and attractive opportunity to invest in a well-sought after asset class offering stable yields and attractive risk-adjusted returns.

Elite Logistics Fund I is fully invested with assets under management of approximately EUR 400 million as at Closing Date.

Key Investment Highlights
  • Resilient asset class that is a beneficiary of structural growth tailwinds
  • Niche focus on high-growth and defensive sectors such as e-commerce, cold store logistics and air transportation logistics provides stable and attractive distribution yield
  • Geographically diversified portfolio in attractive European logistics markets supported by long lease profile and high-quality tenant base

Poland

Poland is at the heart of Europe’s logistics infrastructure, geographically located in the center of Europe and acts as a vital transport hub connecting Western, Eastern, Central and North Europe. Poland’s strategic location, together with significant investment in the country’s transport infrastructure and relatively low labour costs, have spurred the growth of Poland as a logistics and manufacturing hub for Europe. Additionally, Poland is strategically located along the Belt and Road Initiative and is poised to benefit from a boost in trade through the China-Europe train routes.

Germany

Germany is one of the most attractive logistics markets globally mainly due to its strategic location in Central Europe, excellent infrastructure and high technological standards. The country hosts Europe’s biggest economy and is the fifth-largest e-commerce market globally. The sizeable and growing e-commerce market is a key demand driver for prime logistics warehouse space. In addition, Germany is well-situated at the crossroads of numerous global and European trading routes as well as within the industrial corridor of Europe and serves as a key gateway to global trade. The country is also well-positioned to benefit from the Belt and Road Initiative which is expected to enhance trade flows.

Spain

Spain’s strategic location within Europe, paired with strong infrastructure and low labour costs makes it a highly attractive location for logistics investments. The country is a key export hub serving markets in Europe, the United States, Latin America and countries in the north of Africa and the Mediterranean basin. It is the fourth largest exporter of agri-food products in the European Union, and also the eight-largest automotive producer in the world (second-largest in Europe). Spain’s industrial and logistics investment volumes have risen from below that of Europe’s average volumes between 2007-2019 to triple the average investment volumes in the region. This further highlights the growing attractiveness of its logistics market.

Czech Republic

Strategically located at a natural crossroads for major transit corridors, Czech Republic is one of the most sought-after logistics markets in Central Europe, offering connectivity to key logistics such as Germany, Poland and Australia. The region is also a strategic manufacturing hub due to low wages and a highly skilled workforce. In addition, consumption, e-commerce and rising volumes of trade continue to contribute to demand for distribution and logistics space in Czech Republic.

United Kingdom

UK is the sixth largest economy in the world with the third largest e-commerce market globally. The sizeable e-commerce market is a key driver of demand for logistics space, accounting for 25% of take-up between 2017 to 2019. Furthermore, Covid-19 has led to a surge in online penetration. Supply chains in the UK are also increasingly domestic in focus, with an increased reliance on UK ports in relation to Brexit planning. All these positive demand drivers, coupled with a tight supply stock continue to present attractive investment opportunities in the UK logistics market.