LIP Invest expands institutional fund business with logistics real estate

LIP Invest expands institutional fund business with logistics real estate

The Munich-based logistics real estate investment specialist LIP Invest GmbH (LIP) has successfully completed the equity placement of its real estate Special AIF “LIP Real Estate Investment Fund - Logistics Germany” launched in mid-2018 as scheduled on the 30 June 2019 with a final closing amount of €175 million.

Bodo Hollung

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“We were very happy with the widespread interest in our fund from banks and savings banks, pensionfunds and schemes, and Family Offices. As well as giving us recognition of oursuccess over the past few years, it is also an enormous incentive for the workahead of us,” says Partner and Managing Director Bodo Hollung. Ten properties with a total investment value of around €225 million have been acquired for the fund. With two further properties in the acquisition process, with a value of around €50 million, the fund has now been 90% invested. The portfolio is almost wholly made up of new and nearly-new real estate, with an average tenancy agreement residual of six years. After the use of borrowed capital, the fund reached yields of over 6% with a planned IRR of around 7%.  

LIP Invest launchesnew logistics real estate fund

The new logisticsreal estate fund “LIP Real Estate Investment Fund – Logistics Germany II” was launched at the beginning of October 2019. In a Club-Deal with three Germaninsurance companies and two pension insurance carriers, a first closing of €125million could be completed. As part of the core strategy, the fund will focuson high quality logistics real estate in established and up-and-coming locations. The planned investment is between approximately €350 and €400million.

A further €75 million equity will be placed successively over the next few months. A first object worth €30 million has already been acquired for the fund. Another acquisitionof a €40 million new build is expected to be completed by the end of October 2019 and for two objects over €50 million, finalisation of LIP’s LOI is imminent.

“Investors appreciatethe close personal relationship. Our proximity to the market, reliability and speedallows us to always meet our customer’s requests for capital calls”, says Bodo Hollung, “this is why I’m so pleased that a number of clients from previou spartnerships have once again placed their trust in us.” Both funds, in the form of a Real Estate Special AIF, are managed by the Service KVG INTREAL.  

Sebastian Betz promoted to company management

LIP has made staffing decisions to reflect the growingfund business. Sebastian Betz had been appointed an authorised signatorywith single power of attorney. In addition to his current duties withinAcquisition and Asset Management, he will take on further responsibilities.“I’m very pleased to be able to broaden the base of our management team withSebastian Betz, with whom I have worked for many years and, in the last fouryears, first under RLI and now with LIP have acquired logistics real estate forover €700 million” says Bodo Hollung, “Sebastian Betz and Istarted RLI Investors and LIP from scratch. The hard, close and successful work has bound us together.”  

Sebastian Betz began his career as a consultant at Realogis Immobilien in Stuttgart aftergraduating with a Bachelor of Science and Master of Arts in Business Administration and Geographyfrom the University of Trier. He was then responsible for Acquisition and Asset Management at RLI Investors before founding LIP Invest with Bodo Hollung and becoming one of the most active investors in logistics real estatein Germany. Once the Asset Management team expansion is complete by end of the year, LIP will have eleven employees.

LIP continues to invest solely in German logisticsreal estate. “Sustained developments, such as booming e-commerce, the continued trend to out-source logistics services, ever-shortening product cycles with alower level of vertical manufacturing, will determine the demand for logisticsspace in the next few years, if not decades”, Bodo Hollung is sure, “Germany will always play an important role in a world of global logistics due to it central-European location, the size of the population as well as its top logistics performance worldwide.

LIPs planning – on the basis of high demand and positive market conditions – a third fund for the second half of 2020. “We already have reservations for the issue of our third fund. In particular, investors with an investment horizon of €5 million to €25 million feel in good hands with us. Investors in specialist real estate, such as logistics, prefer to go to a specialist – so-called “Investment Boutiques” rather than a generalist, whose funds are often dominated by large individual investors” concludes Hollung.

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