AXA Investment Managers – Real Assets has announced the final close of its logistics development club, having reached its €240m (£213.9m) target.
The equity commitments raised from four international institutional investors will be used to develop around 10.8m sq ft of grade-A logistics space.
The logistics development club intends to capitalise on the strong demand for modern grade-A logistics buildings, driven by ongoing consolidation in the sector, changes in consumer behaviour and the rapid growth of e-commerce.
The fund is expected to benefit directly from the development expertise of Baytree Logistics Properties, a pan-European logistics and industrial platform set up in partnership with AXA IM – Real Assets in 2015, which brings complementary skills to a strong pan-European real estate investment network.
Logistics development club was launched in July 2016 and has already secured four sites to be developed in France, Germany and the UK which, once complete, will deliver a total of around 2.7m sq ft of logistics space.
The fund forms part of the AXA IM – Real Assets’ wider logistics real estate strategy which includes an existing pan-European logistics portfolio valued at €1.7bn and comprising around 27m sq ft of space.
Arnaud de Jong, logistics development club’s senior fund manager at AXA IM – Real Assets, said: “Logistics development club allows us to capture opportunities in the cycle and create value for our clients through the development of an institutional-quality logistics product designed to meet the evolving requirements of occupiers. We firmly believe that the ongoing structural changes in supply chains, e-commerce and consumer behaviour will continue to drive demand for logistics space.”
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