LIP Invest, leading provider of special real estate funds in the asset class of logistics real estate in Germany, organised a series of events with IMMOEBS e.V. under the title "Logistics real estate: tumbling prices, increasing ESG requirements - what's next?”.
At the beginning of September, more than 300 interested guests accepted the joint invitation to the events in Hamburg, Düsseldorf and Stuttgart at the premises of the host law firms REIUS, CMS and Heuking Kühn Lüer Wojtek.
Sebastian Betz, Managing Director of LIP, and Natalie Weber, Authorised Signatory and Head of Fund Management, focused their presentations on interest rate and inflation developments in recent months and their impact on returns and purchase prices of logistics properties. The presentations by the law firms on the disclosure and taxonomy regulations as well as the LIP contribution on the practical implementation of ESG criteria also met with great interest.
"With the events we have provided an insight into the current market environment and sustainable logistics real estate. When interest rates rise, the purchase factors for logistics real estate fall. Only if end investors achieve their return targets will the asset class remain an attractive investment for institutional investors, who generally expect a distribution yield of at least 4 percent. Project developers are already renegotiating property prices and trying to compensate rising gross initial yields with increased rents per square metre. For users, the changed capital market environment thus goes hand in hand with sharply rising renting costs. But with the implementation of ESG measures that reduce operating costs – for example a photovoltaic system or consumption-optimised building technology – it is possible to counteract this to some extent," Sebastian Betz sums up.
On October 27th, an event with the newly founded IMMOEBS team Schweiz will be hold in Zurich. Daniel Pahl, authorised signatory and general counsel at LIP Invest, will address the current market environment for investments in German logistics real estate.
For the upcoming year, LIP is already planning a home match in Munich as well as further events in Bremen and Frankfurt am Main.
As the alumni association of the Real Estate Institutes at the EBS University of Economics and Law and the University of Regensburg (IREBS Immobilienakademie), IMMOEBS e.V. has become the largest network in the real estate industry in Germany. LIP has been organising joint events with the IMMOEBS for many years and has several teaching assignments at IREBS on real estate economics and the transaction management of logistics real estate.