Savills Investment Management has launched a pan-European logistics investment fund in partnership with Vestas Investment Management.
The Vestas European Strategic Allocation Logistics Fund (VESALF I) is among the first ever ‘blind’ funds raised solely from Korean institutional investors to invest in European property. It will target core/core-plus logistics assets of between €40 million to €140 million across all key European markets.
Vestas has raised €200 million from Korean institutional investors which, combined with manager co-investment and up to 60% gearing, will give the fund a target gross asset value of €450 million to €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 (pictured). Ashurst advised on the formation of the partnership between Savills IM and Vestas IM as well as the acquisition of the seed asset.
Savills Investment Management’s head of strategic partnerships Jon Crossfield said the fund is a key milestone for both 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.”