Singapore, 23 March 2020 – Singapore-based alternative asset management firm Elite Partners Capital (“Elite Partners”) is pleased to announce the successful first close of its pure play Elite Logistics Fund. Launched in January 2020, Elite Logistics Fund targets investment opportunities in the EU and the UK’s logistics sector, tapping into the region’s vast consumer market and logistics space, driven mainly by changing consumer trends and fast-growing e-commerce sector in Europe.
The fund’s first close follows the successful listing of the first sterling-denominated REIT, Elite Commercial REIT, on the Singapore Exchange on 6 February 2020. Elite Commercial REIT has an initial portfolio of 97 properties across the UK.
Elite Logistics Fund will hold more than four million square feet (approximately 372,000 square metres) of logistics assets in Poland and UK. The Polish assets are in Warsaw and Gdansk, near the largest deep-water container port terminal in Poland operated by PSA International and in close proximity to the main international airport and rail links to China’s Belt and Road Initiative. 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 MNCs with strong tenant covenants and long average weighted unexpired lease term of approximately five years.
Her Excellency Ms. Magdalena Bogdziewicz, Ambassador of Poland to Singapore, said: ““Poland is located on the crossroads of the East-West and North-South trade corridors, and for centuries has played a key role in the international flow of goods. Over the past few decades, our economic potential has been strengthened through deep economic reforms and heavy investments in infrastructure, which led to soaring interest of foreign capital. With Brexit pulling money away from the UK into continental Europe, Poland has become a new investment hot spot with our mature market, stable and uninterrupted economic growth, quality assets and attractive yields.”
“The real estate market, with office space, retail and logistic assets generating good incomes, has been penetrated by foreign investment funds with South Korea and Singapore topping the list of Asian investors, followed by the Philippines, India and Japan. With growing metropolitan areas and major infrastructural projects (such as ‘Solidarity’ Central Transportation Hub) in the pipeline, we expect this trend to continue in the years to come,” she added.
Mr. Enoch Tan, Portfolio Director of The Logistics Fund, said: “Rapid urbanisation and changing consumer behavior 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.”