LIP Invest has rolled out its fifth logistics fund, LIP Real Estate Investment Fund – Logistics Germany V, focusing solely on core logistics properties in Germany.
Originally planned for last year, the fund was delayed to allow investors to adjust their asset allocation strategies.
Managed by IntReal, the open-ended real estate fund prioritizes climate-conscious property selection, offering institutional investors an attractive return on investment along with inflation protection.
Targeting locations with long-term, high demand, the fund seeks multi-tenant properties with continuous rental growth potential and value appreciation. The fund managers aim to acquire 10-15 properties with a minimum investment of €350 mln. By building a diversified portfolio, they aim to achieve an attractive balance between risk and return. Debt financing will be capped at 50% of the fund’s value.
The strategy emphasizes diversification across property types, geographic location, and tenant sectors. This, along with varying property sizes and lease lengths, further mitigates risk. Leases will be indexed to inflation to maintain property value.
Sustainability is a key focus, aligning with Article 8 of the EU Disclosure Regulation. This includes installing photovoltaic systems in properties, allowing tenants to benefit from lower energy costs.
Bodo Hollung, partner and managing director of LIP Invest, said: ‘Following the price corrections of the past 15 months and the reluctance of many investors due to the uncertain macroeconomic forecasts, logistics properties are once again at the top of many investors’ shopping lists. Predictable rental income, inflation-protected leases and value stability make logistics an attractive investment. In our opinion, the opportunity for value increases is currently higher than it has been for many years.’
LIP Invest’s fourth logistics fund closed at the end of 2022 with €190 mln in equity and surpassed its target by acquiring 13 properties for a total investment of over €350 mln.
Over the past six years, LIP Invest has secured investments from over 60 institutional investors, raising €950 mln across their four logistics funds. The €1.8 bn logistics portfolio now consists of 61 high-quality properties in prime locations, with a total area of over 1.4 million m2.