Capitalica Asset Management launches Green Logistics Fund
Capitalica Asset Management (Capitalica), a real estate investment management firm, has launched Capitalica Green Logistics Fund (Fund), which intends to invest in already built and stable income-generating sustainable and ESG compliant logistics properties in the Baltic region.
The Fund is the first logistics fund in the Baltics which aims to consolidate green concept logistics centers in strategic locations near major cities and transport lines throughout the Baltic countries. “Our company’s strategy is to invest in sustainable core assets, so the new Fund will focus on modern and energy-efficient logistics properties which are built and operated by the highest standards of energy efficiency, environmental protection, pollution, and noise reduction. We create added value by combining sustainability, the best rental conditions, and attractive investment opportunities,” says Andrius Barštys, CEO of Capitalica.
The Fund is a registered closed-end fund with a target size of EUR150 million, with a hard cap positioned at EUR300 million. The Fund is specifically intended to target global institutional and private investors. Capitalica as the Portfolio Manager will manage origination and investment decision-making processes and divestment activity over time as well as overall returns generation.
Fund will look to create efficiencies for sustainable management of a consolidated portfolio of warehouses and logistics centres. “The importance of e-commerce is growing, and the Baltics region is developing extremely fast, so the logistics sector offers particularly high growth potential. Baltic countries have the highest yield values compared to their European counterparts. This sector has remained resilient in the context of a global pandemic with increasing volumes of e-commerce and will continue to do so in the future. Warehouses and logistics real estate are becoming increasingly important in the Baltic region and are profiting from the growth in online retail. It became particularly clear during the coronavirus crisis how vital logistics is in our modern society,” says Andrius Barštys, CEO and Portfolio Manager of Capitalica.
Green Logistics Fund will aim to utilise strong market dynamics for investments of this kind in what is still a fragmented market, with significant scope to consolidate with confident end user potential. A key factor in the launch of this Fund was that the fundamentals for logistics remain favourable with low correlation to other asset classes and attractive investment returns. The key risk mitigants for the strategy include investments in high-quality sustainable assets with long-term leasing agreements (WALE 5+ years, triple-net, Indexed tenants) in prime locations close to airports, rail hubs, and highways. The Fund has already identified an existing pipeline of potential warehouses and logistics centres in the Baltics.
The first fund of Capitalica, Capitalica Baltic Real Estate Fund I is managing CBD located Class A business and shopping centres in the Baltics.