Arlington Securities has launched a €1.2bn (£800m) European logistics fund
The open-ended fund unveiled today, will be named the Arlington European Logistics Fund and aims to invest in direct industrial property in continental Europe.
The fund’s initial portfolio consists of 12 industrial properties located throughout Europe’s major logistics markets, including France, Germany and Belgium. The fund will aim to provide a total equity return of more than 9.5% a year.
Investors have committed €625 (£419m) initially. The balance will be committed over the next three years. The long term gearing target of the fund is 50%.
Peter Davies, fund director of the Arlington European Logistics Fund, said: ‘This is an ideal time to launch a European logistics fund as the prospects for the sector are very strong. Institutional investors from across the globe are looking to invest in an asset and location which they believe is ideally placed to benefit from the increasingly globalised economy.
‘The long term nature of the asset also makes it ideal for institutional investors looking to diversify away from bonds while achieving higher returns.’