Savills IM extends Vestas partnership with launch of discretionary logistics fund

30 November 2020

Savills Investment Management (Savills IM) the international real estate investment manager, has launched a pan-European logistics investment fund in partnership with Vestas Investment Management (Vestas). 

The Vestas European Strategic Allocation Logistics Fund (VESALF I) is among the first ever ‘blind’ funds that has been raised solely from Korean institutional investors to invest in European real estate. It will target core/core-plus logistics assets of between EUR 40–140 million across all key European markets.

Savills IM will be the European fund and asset manager in partnership with Vestas, who have raised the capital for the fund from Korean institutional investors. Vestas has raised EUR 200 million, which combined with manager co-investment and up to 60% gearing, will give the fund a target gross asset value of EUR 450–500 million.

The fund will be seeded with the recent acquisition of a new 115,000 sq m unit leased to DSV in Tholen, the Netherlands. Ashurst advised on the formation of the partnership between Savills IM and Vestas IM as well as the acquisition of the seed asset. 

Jon Crossfield, Head of Strategic Partnerships, Savills Investment Management, commented: 

“Having advised and worked closely with Vestas for several years, we are delighted that the relationship has now led to us jointly establishing the first blind logistics fund for Korean institutions. It is a key milestone for both of our firms, and a clear sign of how the Korean market is maturing. Institutions are increasingly willing to back partners they trust, to better access stock in competitive markets and to achieve greater portfolio diversification.”

Salvatore Lee, Managing Director, Vestas Investment Management, commented:

“We are very pleased to set up this blind logistics fund with our key partner Savills IM and to be able to bring a valuable new product to our proactive Korean investors in such a dynamic and competitive logistics market. This is a big step for Vestas and builds on our five-year history of overseas investments. We are very grateful to the Savills IM team who have supported and are now partnered with us. We are excited to continue deploying the capital on behalf of VESALF I over the next two years.”

Savills IM’s recently released 2021 Outlook report identified logistics as the bright spot in the real estate landscape. The sector has been a clear winner throughout the COVID-19 pandemic because of the increase in online shopping, and will continue to be backed by solid fundamentals and structural tailwinds such as a further increase in e-commerce and low overall vacancy rates, the report said. 




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