Delin Capital Asset Management, ('DCAM' or the 'Company'), a Jersey-registered real estate investment advisor and asset manager focused on investments in logistics assets in the UK, Belgium and the Netherlands, announces that it has raised 200 million of equity for its inaugural core logistics fund, Capital Preservation Portfolio I, ('CPP I' or the 'Fund') providing the Fund with a total investment capacity of in excess of 400 million after leverage.
The Company also announces that it has acquired CPP I's first asset, a prime distribution centre located in the Flight Forum business park in Eindhoven, the Netherlands, for 15 million from Europa Immobiliare No.1 Fund, a closed ended fund co-managed by Cordea Savills and Vegagest SGR SpA. The centre is let to Phillips Lighting BV and generates a yield of c. 8%.
DCAM was established with the intention to target the acquisition of income producing distribution assets in core logistics locations to deliver CPP I's investors stable and, where possible, indexed linked long-term income returns combined with real capital preservation. DCAM's location-led investment strategy is focused on the UK, Belgium and the Netherlands as its core logistics markets.
Alongside its purchase in Eindhoven, DCAM has selected the following areas as key submarkets: the UK Golden Triangle, the areas surrounding London and Heathrow, Rotterdam Port, Antwerp Port, Schiphol and the Brussels-Antwerp Axis.
Logistics assets within these selected markets demonstrate defensive qualities through their potential to generate strong levels of income and above inflation capital growth outside of the current economic cycle.
The long term trend of the off-shoring of manufacturing output away from higher cost, developed nations to lower cost, developing nations has increased demand for well-located and interconnected logistics assets. Moreover, the ever increasing share of retail spend from delivery based e-commerce has intensified the demand for modern and effective distribution hubs as logistics operators and retailers continue to respond to the structural shift in consumer spending patterns.
In order to ensure the Fund invests in assets which demonstrate excellent liquidity and provide diversification benefits to investors, DCAM will target distribution and logistics warehouses of a size between 10,000-50,000 m² in its core submarkets. DCAM may also consider development or value add investments on a selective basis, provided their locations as a logistics hubs are sustainable over the long term by virtue of proximity to local infrastructure.
Christian Jamison, Chief Executive Officer of DCAM commented: "DCAM was established in response to investors' demand in this uncertain market for a product that offers stable, long-term and inflation indexed income combined with real capital preservation.
"Our clearly defined investment strategy to acquire prime logistics assets in core locations in the UK, Belgium and the Netherlands, provides us with a targeted means to achieve these investment objectives. As long-term investors, we are attracted by the strengthening of occupier demand for well located, modern logistics assets, as retailer and logistics operators continue to consolidate their supply chains to meet consumers' growing desire for next day or, increasingly, same day delivery of online purchases.
"Our purchase of the Fund's first asset is perfectly in-line with our stated strategy and we look forward to driving the acquisitions phase of the Company's evolution. With 200 million of raised equity we are well placed to transact quickly in the market to secure the best opportunities within the asset class for the benefit of our investors."
Source: FTI Consulting