GARBE Industrial Real Estate raised approximately €400m in equity among German and international investors for its investment fund, GARBE Logistics Real Estate Fund Plus III (GLIF+III). It marks a plausible continuation of the company’s European growth strategy. The new logistics fund invests in established logistics sites across Europe as well as in selected growth regions, in some cases pursuing value-add and development strategies in addition to its main core-plus strategy. Its seed portfolio consists of 22 assets with an investment volume of over €650m and about 400,000m² of lettable area. Located in Germany (21) and Poland (1), the properties show an occupancy rate of 95% and a WALT of more than ten years. A second closing is therefore planned before the end of this year.
Christopher Garbe, Managing Partner of GARBE, commented: “We set up the GLIF+III during a very challenging market cycle. On the part of our clients, it is thus a remarkable sign of confidence in the logistics real estate market, in the fund strategy and in the competencies of GARBE as leading manager and developer of logistics real estate in Europe.” Garbe went on to say: “This represents a strategic milestone, and is the result of our active European expansion strategy. The GLIF+III combines our entire management competence while opening our platform up to international institutional investors.”
Jan Philipp Daun, Managing Director of GARBE, added: “Due to their indexed rents, logistics properties act like a stabilising anchor during times of crisis, and offer a maximum in protection against value erosion due to inflation. It has been a lessor’s market that offers us a reliably strong demand for logistics space everywhere in Europe, meaning both in primary and specifically in secondary locations, and we are aware of additional rent upside here. You need to remember that rents, making up five percent of the overall costs, play a negligible role in the logistics industry in general and for our clients in particular.”
And Daun added: “The fund taps the principally robust market sentiment, and gives institutional investors an opportunity to participate in the ongoing logistics boom. Our well-filled project pipeline enables us to ensure speedy capital drawdowns despite the keen demand for logistics real estate.”
