LIP Invest, the Munich-based investment specialist, has taken third place among the top logistics real estate investors in Germany, according to the annual bulwiengesa study "Logistics and Real Estate 2020". In the longitudinal comparison of the period 2015 – 2020 LIP was able to secure the eighth place in the top 20, even though the company was only founded mid-2017.
Julia Olivia Oechsler
LIP, with its experts in the fields of logistics, real estate and investment, already ranks as one of the established investment houses in the logistics real estate asset class despite its short company history.
“Many players in the market see logistics real estate as an anchor in the crisis. Long-term trends and current developments continue to signal positive growth in the industry. Despite stagnating demand for space in manufacturing, a new record was set in 2020 with 5.3 million square metres of new build. High demand for space is not only a result of ever-expanding e-commerce, but also due to space optimisation and consolidation, the continuing trend of out-sourcing, as well as the establishment of new supply networks”, explains Bodo Hollung, partner and managing director of LIP Invest, as the reason for the sustained interest in the logistics real estate asset class by institutional investors.
The third LIP logistics fund “LIP REAL ESTATE INVESTMENT FUND – LOGISTICS GERMANY III” was launched at the beginning of October 2020 and is ready for the first equity closing with €125m. Institutional investors, primarily from the savings banks and pension funds, have either already subscribed to the fund with more than €110m or have committed to invest.
“For investors in a position to make a quick decision, there is almost €15m still available. With equity of around €175m and a moderate leverage of 45%, we want to build a broadly diversified and low-risk portfolio with an investment volume of around €320m. We are planning a second and final closing at the end of 2020," says Sebastian Betz, authorised signatory at LIP and responsible for all funds. The first property has already been acquired. Four further objects are due to be certified in November 2020.
LIP Invest has been able to secure over €560m in equity from institutional investors for its three logistics real estate funds since 2018. €875m has been invested in the acquisition of real estate between 2018 and 2020. The majority of this amount – over €500m – has been invested in 2020 and has earned LIP Invest a remarkable third place in the investor ranking.
LIP intends to place a strong focus on sustainability, social responsibility and corporate governance in its existing funds as well as in the recently launched special fund LIP Logistik III. As part of an ESG strategy, concrete goals are to be pursued and measurably incorporated into a GRESB rating.