The new investment solution for European industrial and logistics real estate was successfully launched with an influx of over EUR 200 million in new funds and the purchase of an initial portfolio con-sisting of three properties. Swiss Life Asset Managers offers Swiss pension funds and international institutional investors access to this attractive asset class via its new investment solution.
The subscription period, from the beginning of October to the end of November 2020 attracted strong interest from investors. Overall, investors made capital commitments of over EUR 200 million.
The "Real Estate Europe Industry and Logistics" investment groups, offered in EUR and CHF with currency hedging, invest in a diversified and high-quality portfolio of industrial and logistics real estate in Europe via the new fund, "Swiss Life Real Estate Funds (LUX) S.A., SICAV-SIF – European Industrial & Logistics".
The focus is on Germany and France but includes properties in the rest of Europe, such as in the UK, Benelux and Switzerland. Roughly half of the assets are to be invested in industrial and the other half in logistics properties. This innovative approach combines the advantages of both real estate asset classes: the high diversification of rental income and the flexibility of use of industrial real estate with the earnings strength and the strong demand for space offered by logistics real estate.
As part of this strategy, Swiss Life Asset Managers has already acquired three properties in Germany: a business park in Karlsfeld near Munich, a logistics property in Bremen and a business park in Böblingen near Stuttgart. Further acquisitions with a promising pipeline of related new construction projects are planned in the foreseeable future. The properties for acquisition are selected based on their good geographical
distribution in Europe and a balanced mix of industrial and logistics real estate.
Marius Würgler, Head of Sales & Marketing, Swiss Life Asset Managers, says: "The success of the first
subscription period emphatically confirms the confidence among our investors and underpins the demand for innovative concepts in an emerging asset class – especially in the challenging environment surrounding Covid-19 – as well as the competence of Swiss Life Asset Managers in managing real estate investments. With this offering, we provide existing as well as future investors with an attractive investment opportunity."
Sustainable investment approach
Swiss Life Asset Managers pursues a sustainable investment approach. It Vorzüge von Industrie & Logistik Immobilieninvestitionencovers the entire life cycle, with acquisition, annual monitoring of ESG key figures and clear property development guidelines. The aim is to make the property more sustainable during its holding period.
Advantages of industrial & logistics real estate investments
Industrial & logistics properties are characterised by stable returns. In the case of industrial real estate, this is due to the above-average granularity of rentals received. The combination with the steadily growing demand for logistics properties enables an actively managed defensive strategy that institutional investors value in the current market environment. At the same time, there is long-term growth potential, as the industry & logistics segment will benefit from megatrends such as e-commerce, urban logistics, Industry 4.0 and deglobalisation in the coming years. The mix of small-scale industrial and large-scale logistics properties points to an above-average return with below-average earnings fluctuation susceptibility compared to pure logistics real estate investments.