Europa Capital fund launches new €150m Dutch distribution platform

Europa Capital fund launches new €150m Dutch distribution platform

Europa Capital has launched Dutch Distribution Platform (DDP) in partnership with ARC Real Estate Partners (ARC), an independent real estate investment manager based in Amsterdam, with a target GAV of €150 million.

DDP follows the launch of two industrial and logistics platforms focused on the UK and Germany respectively, Europa Capital said. 

All three country focused platforms have been launched on behalf of Europa Capital’s latest value add fund, Europa Fund VI, which, with close to €600 million of capital commitments, is predominantly focused on the light industrial, logistics and living sectors, and is approaching 50% committed to investments. 

A previous Netherlands focused platform, the Dutch Urban Light Industrial Platform, which was launched in 2019, on behalf of Europa Fund V, in partnership with ARC, established a €144 million portfolio and was divested in July this year as part of the sale of a package of Dutch and German urban logistics and warehouse assets for €270 million, representing one of the largest disposals in the business’ history.

DDP has an c.847,000 sq ft seed portfolio across nine assets which have been acquired in separate transactions by Europa Capital and ARC for a total of €65 million.  The regionally diversified seed portfolio has assets in Oss, Tilburg, Den Bosch, Lelystad, Houten, Asten, Nieuw-Vennep as well as Almere and comprises eight fully let distribution warehouses with a WALT of 7.0 years and one forward funding project.

In total Europa Capital has acquired 67 buildings in the sector for a total of €511 million since 2018, including €299 million in the Netherlands with ARC, said the company in a press release

Jason Oram, Partner, Fund Manager at Europa Capital, commented: “Three years ago we spotted an opportunity to start amassing country specific platforms of scale in the light industrial and logistics space through the purchase of multiple single assets and developments.  In addition to the value created by aggregating these assets our goal was to drive further value through asset management, stabilising the assets and creating liquid institutional quality investment portfolios. We have already successfully disposed of two of these platforms from our previous fund and intend to continue to build on this strategy through our latest value add vehicle, as the demand for light industrial and last mile logistics assets from institutional investors remains strong. 

“The sector has proven its resilience during the pandemic, with strong occupier demand for well-located units continuing to drive rents, as demonstrated by the forward funding project in Nieuw-Vennep which has been pre-let three months ahead of practical completion at rates above our original business plan.”

James Farmer, Partner at Europa Capital, added: “After the successful sale of Europa Capital and ARC’s previous Dutch Urban Light Industrial Platform, we look forward to working with ARC’s team on the ground again to source opportunities as we assemble a strategic portfolio on behalf of our investors. We predict long term growth in the Dutch light industrial and last mile logistics market as continental Europe increases its online e-commerce operations to that in line with the US and UK.”