Bespoke Investment Solutions
for Institutional Investors
Logistics Real Estate Funds
In view of the current economic development, international institutional investors are faced with the challenge of finding profitable investment opportunities in the current interest rate market in order to be able to meet their own obligations from guaranteed interest rates or pension promises. Investing in fund vehicles that specialize in logistics in the European market provides the right approaches for the following reasons:
- Europe is a holistic cross-border logistics system.
- Logistics is the third largest economic sector in Germany after the automotive industry and trade.
- Strong demand for logistics real estate across Europe to cope with the numerous logistical tasks, not least due to the booming e-commerce.
- Below investment criteria are particularly noteworthy:
- interesting risk / return profile
- stable rental prices
- reliably predictable income
- economically also anti-cyclical demand for logistics real estate
- plannable asset management effort
- creditworthiness and size of European logistics tenants comparable to tenants in other asset classes
- low construction costs and quick completion
- suitable for portfolio diversification
Since it was founded, RLI Investors has launched three open real estate funds with a focus on logistics real estate. With its diversified investment strategy and active fund and asset management, RLI Investors has exceeded the planned dividend yield for the last two German open-ended real estate funds since they were launched, making it one of the most successful German logistics investors.
At the end of 2019, RLI Investors was managing assets under management of over EUR 1 billion on behalf of its customers.
RLI European Logistics Backbone Fund
The third investment fund with a focus on Europe is in the sales respectively investment phase. He acquires core / core + logistics properties with a focus on supply logistics in stable European markets with Germany as the absolute main market. National as well as international institutional, indirect investors can currently participate in the fund with equity.
Every investment decision is subject to varied and intensive in-house research. The respective location of the property is analyzed taking into account macro and micro-economic criteria. Current use is increasingly being checked taking into account economic and transnational contexts examining the creditworthiness of the individual user. The third-party usability of the property is subjected to a suitability test at the property level, whereby sustainability and ESG criteria (environmental, social, governance) will increasingly influence the purchase decision in the future. The forecast supply and demand for comparable areas or properties at the location as well as the expected development of the return are determined using selected sources. The aim is to generate a sustainable and long-term stable dividend yield for investors.