Savills Investment Management (Savills IM) has launched a pan-European logistics investment fund in partnership with Vestas Investment Management (Vestas).
The partnership has raised €200 million capital for the The Vestas European Strategic Allocation Logistics Fund (VESALF I) from the Korean institutional investors to invest in European logistics real estate.
It will target core/core-plus logistics assets of between EUR 40–140 million across all key European markets.
”Vestas has raised EUR 200 million, which combined with manager co-investment and up to 60% gearing, will give the fund a target gross asset value of EUR 450–500 million,” said Savills IM in a statement.
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The fund will be seeded with the recent acquisition of a new 115,000 sq m unit leased to DSV in Tholen, the Netherlands. Ashurst advised on the formation of the partnership between Savills IM and Vestas IM as well as the acquisition of the seed asset.
“Having advised and worked closely with Vestas for several years, we are delighted that the relationship has now led to us jointly establishing the first blind logistics fund for Korean institutions. It is a key milestone for both of our firms, and a clear sign of how the Korean market is maturing. Institutions are increasingly willing to back partners they trust, to better access stock in competitive markets and to achieve greater portfolio diversification,” said Jon Crossfield, Head of Strategic Partnerships, Savills Investment Management.
“We are very pleased to set up this blind logistics fund with our key partner Savills IM and to be able to bring a valuable new product to our proactive Korean investors in such a dynamic and competitive logistics market. This is a big step for Vestas and builds on our five-year history of overseas investments. We are very grateful to the Savills IM team who have supported and are now partnered with us. We are excited to continue deploying the capital on behalf of VESALF I over the next two years,” added Salvatore Lee, Managing Director, Vestas Investment Management.