Panattoni launches €600m open-ended logistics fund

Logistics developer Panattoni has launched a Luxembourg-domiciled pan-European fund to invest in income-producing logistics properties and aims to raise €300 million by 2026.

The fund, which has an open-ended, evergreen structure, aims to acquire €600 million of assets, developed and managed by Panattoni. These will include both stabilised assets and forward-purchased pre-let developments. It is being seeded with stabilised Panattoni-managed assets in Poland.

Panattoni’s owners and management team will be co-investors in the fund whose assets will be sourced fronm the territory in which Panattoni operates, namely Central and Eastern Europe – notably Poland, the UK, Italy, Spain, Germany, Austria, the Netherlands and Scandinavia.

The fund,  whose advisory team is based in Poland, will be lead by managing director Krzysztof Dudek, formerly head of real estate investment management at TFI PZU, the investment arm of the PZU Group which is the largest financial and insurance company in Central and Eastern Europe.

Przemyslaw Konieczka, former fund manager and investment director at TFI PZU is executive director at the fund to oversee strategic investment initiatives and portfolio management.

“This is an opportune time to be creating Panattoni’s first income fund,” Dudek said. “The post-Covid market correction has resulted in yields for industrial and logistics properties becoming more attractive. There has been a significant amount of capital waiting on the sidelines for repricing to settle and for more favourable financing conditions.

 “The demand-supply dynamics in the sector continue to be very positive for investors. The potential for rental growth is underpinned by limited supply, stemming from land scarcity, regulatory barriers and rising construction costs, coupled with strong, sustained demand for logistics space, driven by e-commerce growth and new manufacturing”.