RLI Investors increases real estate assets under management to ca. EUR 800 million in 2018
In 2018, RLI Investors (RLI) has repeatedly confirmed its position as a leading independent fund and asset manager of logistics property in Germany. The real estate assets under management were up by 37% year-on-year, to around EUR 800 million. In the same period, the total floor area of the logistics properties managed by RLI increased to some 1.04 million square metres. The logistics space owned by the “RLI Logistics Fund – Germany I and II” is fully let. At the end of 2018, the company was managing 29 properties.
The majority of the acquisitions made by RLI were carried out for the “RLI Logistics Fund – Germany II”. Placement of the equity volume of over EUR 200 million and the resulting transactions for the open-end real estate special AIF progressed according to plan.
At the end of the 2018 financial year, for example, RLI acquired a newly-constructed property in Weiterstadt, near Darmstadt, in the Rhine-Main logistics region. The deal was part of an off-market transaction for the RLI Logistics Fund – Germany II. The vendor is MultiPort Weiterstadt GmbH. The property stands on a ca. 15,500 square metre site in Weiterstadt’s Gewerbegebiet Süd commercial area, with direct access to the A5 motorway and B42 federal road. It provides a lettable area of around 7,000 square metres, which is let on a long lease to a plastics manufacturer. Law firm RAe Grothmann advised RLI on the legal and taxation issues of the transaction.
Katrin Poos, Managing Director of RLI, comments: “Our off-market transactions demonstrate that RLI is valued as a reliable and transaction-secure business partner by the market. We now receive over 40% of our sale offers from independent, smaller agents, while owners and portfolio holders each make up 25%. This direct access to the market enables us swiftly to acquire interesting properties for our fund investors.”
The diversified portfolio currently comprises 10 logistics assets. Additional new and existing properties, which are currently undergoing due diligence, will be added to the portfolio by the end of the first quarter of 2019. The investors in the fund are institutional [investors], such as insurance companies, occupational pension schemes, pension funds and banks. They appear to be pleased with the development of both funds and are planning further investments in 2019.
During 2019, full investment of “RLI Logistics Fund Germany – II” and further optimisation of the operational management processes for the existing portfolio will have the highest priority. With existing properties, RLI pursues a consistent manage-to-core strategy. RLI’s objectives, through active asset management and individual development projects, are to increase potentials, maintain the high occupancy rate and sustainably secure the value of the properties during the holding period. For this, the company can take advantage of its expertise and the synergy effects of current projects, such as the development of ca. 30,000 square metres of new logistics space near Berlin and another area in Dormagen.
In view of the continuing low interest rate environment and the attractive yields on logistics properties, RLI is also intensively exploring various options for derivatives, in order to satisfy interest from existing and potential (institutional)