Connect with us

Hi, what are you looking for?

Bnreport Business News Report

Finance

Aberdeen Standard raises £187.5m for a fund focused on warehouses

Just as the online Christmas shopping boom builds to a cresc..

Just as the online Christmas shopping boom builds to a crescendo, Aberdeen Standard Investments has swooped in on the trend raising £187.5m for its warehouse fund.

In a London stock market float yesterday – the firm’s first since Aberdeen Asset Management merged with Standard Life earlier this year – the European Logistics Income fund pulled in £187.5m from investors.

The listed investment trust plans to tap into the growth of e-commerce, investing in “ultra-modern” warehouses and local “last mile” distribution centres across Europe.

Read more: Warehouse investment firm heads for stock exchange as it seeks to capitalise on the rise of e-commerce and consumer demand for fast deliveries

“Our discussions with a broad range of investors had led us to believe that long term exposure to income-generating logistics assets across Europe within a closed-end structure would have wide appeal,” said Aberdeen’s co-chief Martin Gilbert.

“This has proven to be the case with pension funds, multi-asset managers, wealth managers and retail investors subscribing to the issue.”

Occupier demand is strengthening for these types of warehouses, and typically they benefit from long-term continuous leases which are linked to inflation. This means they provide solid rental income alongside the potential for capital growth.

Read more:After the hype, this year's retail extravaganza of Black Friday was a short-lived frenzy

Aberdeen’s fund aims to deliver a distribution yield of 5.5 per cent in euro terms, predominantly in the form of dividends, and a total return of 7.5 per cent per year.

The £187.5m, along with some “modest” leverage, should be fully invested within a year according to Aberdeen.

“In the UK, e-commerce has grown rapidly and significantly in recent years. Europe is growing too but from a lower base, and the pace is set to increase,” said Aberdeen’s global co-head of real estate Pertti Vanhanen.

Read more:London set for biggest IPO in six years as warehouse giant plots 2017 float

Original Article

[contf]
[contfnew]

CityAM

[contfnewc]
[contfnewc]

The post Aberdeen Standard raises £187.5m for a fund focused on warehouses appeared first on News Wire Now.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Politics

Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae.

Finance

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.

Tech

Enlarge/ You wouldn't really want to use Nvidia's ..

Finance

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

%d bloggers like this: