RLI Investors successfully launches second logistics properties fund
RLI Investors (RLI) has successfully started the placement and investment phase for the “RLI Logistics Fund – Germany II”. After first subscriptions by renowned institutional investors in the amount of around EUR 100 million and the first closing, RLI has started the investment phase.
The open-ended segregated real estate fund (AIF) will invest in a diversified portfolio of logistics properties in Germany and targets an investment volume of circa EUR 350 to 400 million. It has a term of ten years and a targeted annual distribution yield of 6.75 percent.
Peter Wenzel, Investment Manager at RLI: “Our property pipeline is well-filled. We are currently examining promising offers of diverse objects at top locations in Germany which conform exactly to our fund strategy.”
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-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.
Demand for safe and long-term financial investments remains strong
RLI’s RLI Logistics Fund – Germany II is a response to the consistently strong demand among institutional investors for alternative financial investments with attractive risk/return profiles.
“We are delighted with the trust investors have placed in the “RLI Logistics Fund – Germany I”, which is fully invested. It has encouraged us to launch a second fund,” says Sophie Schweimer, fund manager at RLI. “The product targets both existing and new investors. Our extensive network, our many years of experience and our strong expertise enable us to identify attractive buying opportunities and secure properties for the fund including in tight markets,” continues Schweimer. With a realised transaction volume of about EUR 400 million, RLI was one of the largest investors in the German logistics property market in 2016.
RLI Investors is well positioned
Together with Katrin Poos, RLI managing director since 1 May 2017, and the 11-strong team of professionals, RLI is well positioned. Each of these seasoned property and logistics experts is personally involved in the competent investment and management of the RLI funds. The company also plans to bring additional employees on board this year to further strengthen the existing team. In addition, RLI has access to a broad and well-established partner network: fund administration for the “RLI Logistics Fund – Germany II” will be provided by the Hamburg-based service KVG IntReal International Real Estate Kapitalverwaltungsgesellschaft mbH that is also in charge of the earlier product.