Newport logistics fund launches ambitious £250m European expansion
Newport Logistics Fund, a Luxembourg-based private equity real estate fund, has launched its third pan-European logistics fund. This venture aims to raise £250 million to develop 10 to 12 facilities across Europe. The fund, part of the Panattoni group, plans to continue its risk diversification strategy.
As stated in Newport Logistics Fund's press release dated 3rd October 2024, the success of the fundraising is associated, among other things, with offering investors a unique Europe-wide tool for allocation in logistics development through thoughtful geographical diversification of projects.
The fund highlights that diverse entities, including affluent individual investors, family businesses, and investment funds from the European Union, Switzerland, the United Kingdom, the United States, and the Middle East, have recognised its previous activities.
Previous successes of Newport Logistics Fund
Newport Logistics Fund has achieved impressive results from its earlier initiatives. The first fund, Newport Logistics Fund I S.C.A. SICAV-RAIF, registered in 2022, raised and invested resources in three modern logistics facilities in London, Amsterdam, and Lodz within ten months. These assets' gross asset value (GAV) totalled £85 million.
The second fund, Newport Logistics Fund II S.C.A. SICAV-RAIF, was established in March 2023 and succeeded. According to the company, "Newport Logistics Fund II was set up in March 2023 and has now invested funds in projects in Austria, the Netherlands, France, Poland and Germany". The value of these projects reached £160 million GAV.
Szymon Ostrowski, the fund's managing director, comments: "Investors appreciate the diversification of assets in strategic locations and the fact that they are getting the best projects and above-average returns." He adds, "The confidence of investors, shown in such less favourable economic conditions, is a confirmation that we are able to select the best projects to deliver the promised returns".
Future plans and sustainable development
Newport Logistics Fund III S.C.A. SICAV-RAIF, the firm's latest initiative, aims to raise £160 million for developing 10 to 12 facilities across Europe. The fund has already secured two projects: one in the north of London, United Kingdom, and another BTS type in Malaga, Spain. Further investments are being analysed and selected in other European Union countries.
Daniel Raemy, a Management Board and Investment Committee member, discusses the strategy for the future: "Our strategy for the future includes expanding our presence in Europe with more projects as a result of raising more capital," he emphasises.
It is worth noting that all projects undertaken within the Newport Logistics Fund meet strict sustainability standards. Each facility is designed per ESG goals and Article 8 of the EU SFDR Regulation. Furthermore, all projects will possess a BREEAM certificate or its equivalent.
Szymon Ostrowski emphasises the importance of sustainable development in the fund's strategy: "Our goal is to achieve the returns expected by investors at 15% per year. Our priority is also to develop projects that have a positive impact on the environment. This meets the demand of tenants and the target warehouse owners to whom we sell our facilities," he says.
