RLI Investors reaches EUR 1 bn of assets under management and plans European fund with Germany as prime investment market
RLI Investors (RLI) has consolidated its position as one of the leading independent fund and asset manager of logistics property in Germany. By the end of 2019, the company had succeeded in increasing its logistics property and fund assets under management by almost 24%, crossing the EUR 1 billion mark.
Last year, RLI acquired eleven logistics properties, worth around EUR 156 million, for the open-end special real estate fund “RLI Logistics Fund – Germany II” and acting on behalf of national and international asset managers. The properties, some of which were acquired in off-market deals, include three development projects with around 39,000 square metres of new construction. The assets are situated in leading logistics regions in Germany, including Berlin, Rhine-Main, Leipzig and Munster/Osnabruck. The properties are let on long leases to top covenants, including CEP service providers and contract logistics companies.
At the end of 2019, RLI had a total lettable area of 1.26 million square metres under management, spread over 38 properties in Germany that are up to 99% let. Leases and amendments on a total area of 220,500 square metres were concluded in the calendar year 2019. RLI Investors has expanded and forged further ahead with its development expertise. For instance, RLI Investors initiated development projects with a total of 45,000 square metres in 2019. Completion of a ca. 19,000 square metre logistics complex in the Berlin region is slated for the second quarter of 2020. In the existing portfolio, realisation of a further 10,000 square metres in Hesse and 16,000 square metres in North Rhine-Westphalia is planned during the next 18 months.
Peter Wenzel, Managing Director of RLI Investors, comments: “We aim to continue to grow in 2020. This year, RLI is planning to launch a European fund that will invest in city ‘last-mile’ hubs in the core of Europe, with an absolute focus on Germany. With this in mind, we have further expanded our team of international real estate experts.” Umut Ertan, founder and partner of RLI Investors: “For this purpose, the RLI group has its own high-performance project development division RLI Development with in-house architecture and civil engineering services as well as a property development pipeline of over two million square meters.”
Katrin Poos, Director of RLI Investors, adds: “Within our portfolio, the expansion of our asset management is also playing a decisive role in maintaining the high occupancy rate and implementing value-enhancing development works. With the new office in Berlin under my management, which is staffed with additional experts, we are setting the course for sustainable and effective business development close to our customers.”
A further corporate objective is to aid in tackling climate change. To this end, the company is planning a significant reduction in the energy consumption of the RLI real estate portfolios, as well as advancing the ESG and sustainability aspects. A first milestone is our participation in this year’s GRESB (Global Real Estate Benchmark), the globally leading environmental, social and governance (ESG) rating system for real estate investments. Katrin Poos, Director of RLI Investors: “We are striving to integrate ESG best practices in our investment and management processes. Through our commitment to the responsible and sustainable investment and management of logistics properties, we aim to provide our investors with enhanced risk-adjusted returns and to foster respectful relationships with tenants”.