New Standards in the Investment Market for Logistics Real Estate

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Germany is the Largest Logistics Market in Europe

....while Logistics is the Third-Largest Economic Sector after the Automobile Industry and Retail Trade

Logistics real estate plays a key role in the supply chain, and that role keeps getting bigger. Logistics real estate serves as connecting link between the procurement of goods and commodities and their distribution. Keywords like “just in time,” “just in sequence,” “same-day delivery,” “time-window delivery” and “last-mile logistics” indicate the daunting requirements both on the vendor side and on the consumer side – requirements that can only be met by a functioning network of high-end logistics assets rich in alternative use potential. Coping with the many different tasks in logistics, such as parcel distribution in the booming e-commerce market, requires the availability of logistics real estate in the most diverse logistics locations.

We will Buy Your Logistics Property

Our investment focus in this context is exclusively on logistics real estate from EUR 5 million onwards anywhere in Germany. At this time, we encourage owners of industrial real estate, advisors, estate agents, asset managers, fund managers and occupiers to submit quotes for any assets to us that might be available for sale. We welcome any offers of existing schemes, newly constructed buildings or property developments. The acquisition options open to us include classic off-market deals but could also take the form of a call for tenders or a structured bidding process. Our defining traits in the acquisition process are discretion, reliability, swift action and very little red tape.

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Basel III, Solvency II, the German Capital Investment Act (KAGB), the German Investment Ordinance (AnlV) and other regulatory parameters bring many institutional investors face up with the challenge of achieving their set minimum rates of return in the context of a historically low interest environment worldwide. In their quest for alternative investment opportunities, few investors can afford to ignore industrial real estate. It is an investment characterised by attractive rates of return, low volatility, high stability of value, and secure, predictable cash flows. What we offer investors are tailored investment solutions that take the specific fiscal, regulatory and reporting parameters of institutional investors into account. Investor choices include the option to buy into our regulated special AIF, “RLI Logistics Fund - Germany II” or to go for a private equity investment.

RLI Logistics Fund - Germany II

The open-ended segregated real estate fund (AIF) invests in high-quality logistics properties in Germany and targets an investment volume of circa EUR 400 million. It has a term of ten years and a targeted annual distribution yield of 6.75 percent. The investment profile of the RLI Logistics Fund - Germany II follows mainly the investment strategy of its successful predecessor, the RLI Logistics Fund - Germany I. Under its core / core-plus strategy, the fund will buy industrial, retail and e-commerce logistics properties in good and prime locations across Germany over the coming months. Investment candidates fall into two categories: high-quality properties with long-term leases and properties with expiring leases that are fully suitable to a broad range of occupiers; and older properties with high value potential. In addition, the fund can buy assets very early during the development stage via forward purchase and forward funding agreements.

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Press Release: RLI acquires fifth property for RLI Logistics Fund – Germany II

The purchase price of the building is around 36 million Euro. Completed in 2000, it stands on a ca. 58,650 square metre site. It provides total lettable area of ca. 35,700 square metres. Around 31,000 square metres of this is logistics accommodation, with ca. 3,900 square metres of offices and staff rooms. The sole tenant of the property is an internationally active logistics company.

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New RLI team member: Welcome André Göpfert!

André (45) has been supporting the RLI team since May 2018. As Fund Manager Real Estate, he is responsible for fund and portfolio management at RLI and, together with his team mates, forms the interface to the capital management company INTREAL and the investors in the RLI fund products.

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New RLI team member: Welcome Sandra Martel!

Sandra (36) has been with RLI since March 2018. She is responsible for the commercial asset management of RLI's existing real estate throughout Germany. As part of this, she develops and implements marketing strategies, takes care of the existing tenants, acquires new tenants and negotiates lease and subcontracting.

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Development of the logistics market throughout 2017

In 2017, the volume of transactions across Germany reached €9 billion, exceeding the expectations voiced at the start of the year. The media and property management companies are falling over themselves with extremely upbeat headlines about logistics investments in 2017.

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