Logistic funds are booming: RLI Investors contributed in the special issue 2019 of Logistik Heute “Logistik-Immobilien & Standorte”
The German special interest magazin Logistik Heute talked to RLI Investors and Dr. Andreas Mattner, President of the German ZIA Central Real Estate Committee e.V. Berlin, about logistics funds – the asset class with the strongest growth. The article was published in the Special Issue 2019 of Logistik Heute “Logistik-Immobilien & Standorte”.
Below is a short excerpt of the article:
“National and international financial investors are looking for attractive returns. The participation in logistics real estate proves to be one of the most promising models – provided that the framework conditions fit Banks and investment houses are following the trend through special offers such as logistics funds, which focus on investing in logistics real estate offered by project developers or direct sellers. For example, RLI Investors GmbH, Munich, which was founded in 2014, is focusing solely on this sector. As an investment and asset manager, the company launched two of these funds in 2015 and 2017. The first is fully invested with 340 million euros, the closing of the second fund with a financial volume of 400 million euros will take place later this year. As an asset class, they include only existing and new real estate from Germany. The target group are typically institutional investors such as banks, pension funds, insurance companies and pension funds. Investors can participate in such a fund from five million euros, the average participation amount is around 20 million euros. The fund buys warehousing and logistics real estate through investor funds and holds it in the portfolio over the long term. The income for the investors is thereby generated by the rental income. The risk is diversified by the distribution on several objects and thereby minimized. For example, investors can expect a targeted dividend yield of 7 % percent on average. The industry average is between 4.5 and 6.5 % return.”