Aberdeen Standard Investment is planning to launch a new UK investment trust next month to target European logistics.
Aberdeen Standard European Logistics Income will invest in a range of logistics, from ultra-modern big box warehouses to last-mile distribution centres.
It will look to raise £250m in an initial placing and offer for subscription on the London Stock Exchange, with trading expected to start in the second week of December.
With occupier demand strengthening and industrial assets benefiting from long-term leases, Aberdeen said it aims to deliver a distribution yield of 5.5% per annum and a total return of 7.5%.
Andrew Allen, global head of real estate investment research at ASI, said: “The European logistics market is already sizeable but developing fast as e-commerce expands over the next three years, outpacing the UK and creating demand for new large distribution warehouses across the region.
“At the same time, as population growth rates rise in key European cities, competition for land intensifies, prompting a ‘race for space’ – particularly for last-mile delivery on the outskirts of towns and cities.
“The new trust will exploit this supply-demand imbalance in the sector as we believe this will support rental income and fuel growth.”
Evert Castelein will lead the company, with Ross Braithwaite and Attila Molnar acting as assistant fund managers.
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