Swiss Life Asset Managers is planning a new investment solution for European industrial and logistics real estate in autumn 2020. This will take the form of both an investment group (investment foundation) for Swiss pension funds and a fund for institutional investors. The aim is to achieve a target volume of around EUR 1 billion.
With its new investment solution, Swiss Life Asset Managers is planning investments in industrial and logistics real estate with a regional allocation in Europe. The main focus will be on Germany, France, Benelux, Switzerland and the UK. The portfolio allocation to the industrial & logistics sectors is based on the specific characteristics of the respective regional target markets. Ideally, the properties purchased will be divided equally between the two sectors at portfolio level.
Advantages of European industrial & logistics real estate investments
Investments in European industrial and logistics real estate will benefit from a number of megatrends: de-globalisation, e-commerce, urban logistics and Industry 4.0. Industrial and logistics real estate is noted for producing steady returns, as the focus is more on rental income and less on value increases from market growth. The mix of small industrial and large-scale logistics properties points to above-average returns with below-average earnings volatility. The Covid-19 crisis in particular shows that the right choice of property types is a decisive criterion for success in real estate investments. In addition to residential properties, industrial and logistics properties in particular are proving to be extremely robust. Moreover, investors can further diversify their real estate portfolio at the European level by entering this market.
Longstanding experience in the industrial & logistics investment segment
Swiss Life Asset Managers has successfully expanded its investment business for third-party clients in recent years. As at the end of March, assets under management totalled approximately CHF 79.3 billion. Together with the investments of Swiss Life's insurance companies, Swiss Life Asset Managers has assets of over CHF 250 billion under management. With real estate valued at around CHF 97.5 billion as at the end of 2019, Swiss Life Asset Managers is one of Europe’s largest institutional real estate investors1.
BEOS AG – part of Swiss Life Asset Managers since 2018 – is a specialist and a market leader in Germany for the development and management of industrial and logistics real estate. It operates within Swiss Life Asset Managers as a European centre of expertise for this real estate asset class. As at the end of 2019, BEOS managed over CHF 4.2 billion in assets in this investment segment.
1 PropertyEU, Top 100 Investors, October 2019