AEW launches new urban logistics & light industrial strategy with EUR475m of initial equity
AEW, a leading global real estate investment and asset manager, has launched a new urban logistics and light industrial strategy (ULLIS) with EUR475 million of start-up equity.
The Platform is structured as a scalable partnership, targeting the development of an initial portfolio of circa EUR800 million. The investors that have committed to the Platform are long-term partners of AEW in the logistics sector and include PGGM, Allianz Real Estate and Crédit Agricole Assurances.
ULLIS aims to build a core portfolio focused on urban logistics and light industrial assets in major metropolitan areas of France, Germany and the Netherlands, where there is a chronic supply shortage while demand is robust and increasing. The majority of equity is expected to be deployed across brownfield build-to-core developments, which will be supported by the acquisition of some income producing assets.
The effects of structural trends supporting demand for industrial space across urban locations are likely to intensify further through growing urbanisation, the rise of urban distribution, as well as the development of industry 4.0 and emergence of partial industrial re-shoring towards Europe. In this context, ULLIS will create a platform to meet the urban space requirements of the new generation of industrial companies and logistics providers.
AEW has a well-established 20 year track record in the industrial and logistics sector which spans France, Germany, the Netherlands, Belgium, the UK, Poland, the Czech Republic, Italy and Spain. ULLIS extends the existing EUR4 billion pan-European logistics portfolio allowing investors to leverage AEW’s extensive networks and access light industrial at scale.
Rémy Vertupier, Co-Head of Institutional Fund Management, Separate Accounts & Club Deals at AEW, says: “The pace of change is accelerating, fuelled by the impact of new technologies, and market demand for industrial space within dense urban areas is growing. Considering the high occupancy levels across existing stock and restricted new supply, we decided to launch ULLIS with a strategy mainly focused on the development of small to large urban projects through the conversion of obsolete outdated buildings and the regeneration of brownfield land into new, high-quality light industrial and logistics facilities. Combined with AEW’s longstanding commitment to ESG objectives, we believe this strategy will positively contribute to the development of cities, and generate sustainable performance for our investors.”