Fiera Real Estate has completed the first close of a new logistics development fund at around £170m.
The fund, called Fiera Real Estate Logistics Development Fund UK, has a final close target of £300m. It is the firm’s first logistics sector-focused development vehicle.
It will have a maximum five-year duration with a two-year investment window, as well as a strong focus on ESG, with all projects targeting net zero carbon construction.
The fund will develop grade-A facilities of up to 300,000 sq ft in metropolitan areas with prime transport links. Chosen sites will typically have one million people within 45-minute drive-time catchments.
Fiera said it launched the fund to “take advantage of the record transitional buying opportunities created by Brexit and the Covid-19 pandemic”. It said demographic shifts, climate crisis, technological progression and changing customer expectations had led to demand for real estate that is fit for purpose.
Chris Button, portfolio manager of FRELD, said: “Levels of occupier and investor interest for last-mile logistics real estate continues unabated and our new logistics fund is well positioned to take advantage of the demand that we are seeing. Our strong track record of creating space that meets the evolving needs of our occupational customers will in turn create value for our investors.”
Alongside its operating network, the firm has increased its focus into the logistics sector in the past few years, developing 6m sq ft of logistics assets since 2019.
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