£250m to be invested in Europe
Aberdeen Standard Investments in e-commerce venture
New HQ: Aberdeen Standard Investments has expanded in Edinburgh
Aberdeen Standard Investments is aiming to capitalise on the rapid growth of e-commerce by launching a £250 million trust.
The European Logistics Income investment trust will be unveiled next month December and will invest in logistic properties such as warehouses and distribution centres.
It will be the first trust launched by Aberdeen Standard Investments following the merger of Aberdeen Asset Management and Standard Life in August.
Proceeds from the fund are expected to be fully invested within 12 months.
A “modest” amount of leverage will be used, taking advantage of the competitive cost of finance in Europe, the group said.
Whilst the company will invest directly in property, it will qualify as a closed-ended investment trust listed on the London Stock Exchange, therefore offering investors liquidity through the secondary market.
The European Logistics Income investment trust will target a distribution yield of 5.5% per annum, predominantly in the form of dividends, and will aim for a total return of 7.5% per annum.
It will be run by a team headed up by real estate market veteran Evert Castelein, based in Amsterdam, who will be supported by assistant fund managers Ross Braithwaite and Attila Molnar and Andrew Allen, global head of real estate investment research.
The new company will tap into the rapid growth of e-commerce across Europe by investing in European logistic properties such as large ‘big box’ ultra-modern warehouses and local ‘last mile’ distribution centres.
Andrew Creighton, head of real estate continental Europe at Aberdeen Standard Investments, said: “We have considerable resources on the ground across Europe, allowing us to buy assets in a range of countries and construct a truly diversified portfolio of properties.
“Investment opportunities range from major distribution hubs for online giants, to single warehouses close to urban areas as customers demand faster delivery of goods.