South Korean firm Vestas Investment Management has partnered with Savills Investment Management on a new “blind” European logistics fund, targeting up to €500m (£443m) in gross asset value.
The Vestas European Strategic Allocation Logistics Fund, raised solely from Korean institutional investors, seeks core and core-plus logistics assets ranging from €40m to €140m.
The pair has so far raised €200m for the fund, which will be seeded with a 1.2m sq ft warehouse leased to DSV in Tholen, the Netherlands.
Both have contributed 5% of their own money to the fund and are targeting an 8% annual internal rate of return, according to local reports. The UK is purportedly among its target countries as well as Germany, France, Belgium, Sweden, Denmark, Finland, Poland and Spain.
Jon Crossfield, head of strategic partnerships at Savills IM, said: “It is a key milestone for both of our firms, and a clear sign of how the Korean market is maturing. Institutions are increasingly willing to back partners they trust, to better access stock in competitive markets and to achieve greater portfolio diversification.”
Salvatore Lee, managing director of Vestas Investment Management, said: “This is a big step for Vestas and builds on our five-year history of overseas investments.
“We are excited to continue deploying the capital on behalf of VESALF I over the next two years.”
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