Garbe raises €200m in second closing for logistics fund

Garbe raises €200m in second closing for pan-European logistics fund

Garbe Industrial Real Estate has raised more than €200 million in its second closing of its Garbe Logistics Real Estate Fund Plus III(GLIF+III).

Together with the first closing at the end of June, the new pan-European fund has a total of around €600 million in equity from German, European and Asian investors. 

Christopher Garbe, Managing Partner of Garbe, comments: “In total, we received almost 600 million euros in capital commitments from German and international investors from Europe and Asia. We have thus succeeded in placing a fund with a pan-European investment focus with international investors. We have thus significantly broadened the base of our investors and can thus act even better on the market. This is an important step for Garbe to establish itself as a leading pan-European manager for industrial, logistics and technology real estate.”

The portfolio of the GLIF+III is also supplemented by two new logistics buildings with an investment volume of around 170 million euros. The two fully rented new buildings are located in Germany. The fund portfolio now comprises 24 properties with an investment volume of around EUR 720 million, an occupancy rate of 96 percent and a WALT of over ten years.

Peter Bartholomäus, member of the management at Garbe, adds: “Logistics is booming and the demand for space is unabated. In particular, real estate is required for the increasing warehousing in order to secure supply chains. This also convinces our investors. We are therefore very positive about another closing this year, especially since with the project pipeline we are enabling rapid capital calls even when there is high demand for logistics properties.”

Garbe Logistics Real Estate Fund Plus III has a further purchase pipeline of over one billion euros. With a planned investment volume of five billion euros, it is Garbe’s largest pan-European fund for institutional investors to date. 

The focus of the GLIF+III is on logistics real estate in the core plus area with a sporadic admixture of core and light industrial real estate. The strategy is supplemented by project developments and value-add properties. The target is a distribution yield of 4 percent pa and an IRR (internal rate of return) of 7 percent pa Institutional investors can participate from a minimum investment of 10 million euros.