Newport logistics fund launches €300m green investment push
Newport Logistics Fund, a Luxembourg-based private equity real estate fund, announced the launch of its third pan-European logistics fund. This initiative aims to raise 300 million euros (approximately 320 million dollars) for the development of 10 to 12 facilities across Europe. The fund, which is part of the Panattoni group, plans to continue its risk diversification strategy.
2:31 PM EDT, October 3, 2024
In a press release dated October 3, 2024, Newport Logistics Fund stated, "The fundraising success is partly due to offering investors a unique allocation tool for logistics construction on a European scale through well-thought-out geographical diversification of projects."
The fund emphasizes that its efforts have been recognized by a diverse array of entities, including high-net-worth individual investors, family businesses, and investment funds from the European Union, Switzerland, the United Kingdom, the United States, and the Middle East.
Past successes of Newport Logistics Fund
Newport Logistics Fund boasts impressive results from its previous initiatives. The first fund, Newport Logistics Fund I S.C.A. SICAV-RAIF, registered in 2022, successfully raised and invested funds in three modern logistics facilities located in London, Amsterdam, and Łódź within just 10 months. The total gross asset value (GAV) of these assets amounted to 100 million euros (approximately 107 million dollars).
The second fund, Newport Logistics Fund II S.C.A. SICAV-RAIF, established in March 2023, also achieved notable success. According to the company, "Fund II quickly began investing the raised funds in warehousing and logistics projects across Europe. Currently, projects are underway in Austria, the Netherlands, France, Poland, and Germany." The value of these projects has reached 200 million euros (approximately 213 million dollars) GAV.
Szymon Ostrowski, Managing Director of the fund, comments, "Investors appreciated the diversification of assets in strategic locations and the access they gain to the best projects with above-average returns." He adds, "The trust shown by investors in such unfavorable economic conditions is a confirmation that we can select the best projects and deliver promised returns."
Future plans and sustainable development
Newport Logistics Fund III S.C.A SICAV-RAIF, the company's latest initiative, aims to acquire 300 million euros (approximately 320 million dollars) for developing 10 to 12 facilities across Europe. The fund has already secured two projects: one north of London in the United Kingdom and another BTS-type project in Malaga, Spain. Further investments are currently being analysed and selected in other European Union countries.
Daniel Raemy, a member of the Supervisory Board and Investment Committee, discusses the strategy for the future. "Our strategy includes expanding our presence in Europe through the execution of more projects, which results from raising more capital," he emphasizes.
All projects carried out under the Newport Logistics Fund meet strict sustainability standards. Each facility is designed by ESG goals and Article 8 of the EU SFDR regulation. Additionally, all projects will be BREEAM certified or equivalent.
Szymon Ostrowski underscores the importance of sustainable development in the fund's strategy. "Our goal is to achieve investor-expected returns of 15% annually in EUR. Our priority is also to execute projects that have a positive environmental impact, meeting the needs of tenants and targeted warehouse owners to whom we sell our facilities," he says.
