The newly-formed £11bn asset manager announced on Wednesday that it is in the process of raising £250m on the London Stock Exchange by floating the Aberdeen Standard European Logistics trust.
The initial placing and offer (IPO) for subscription is expected to commence the second week of December, the firm said.
The company will invest directly in European logistics properties such as ‘big box’ warehouses and local ‘last mile’ distribution centres in an attempt to tap into what the asset manager views as the explosive e-commerce growth across the region.
At present, Aberdeen Standard is the second largest European real estate investment manager and currently manages and invests in over 144 logistics properties worth €2.6bn across 10 European countries.
Evert Castelein, a fund manager based in the firm’s Amsterdam office, will oversee the investment company with assistance from UK and German-headquartered managers, Ross Braithwaite and Attila Molnar, and Andrew Allen, global head of real estate investment research, who is based in London.
According to Aberdeen Standard, the investment company will target a distribution yield of 5.5% per year, predominantly in the form of dividends, and aim to provide investors with a total return of 7.5% per year, both in euro terms.
Commenting on the investment company IPO, Allen said: “The European logistics market is already sizable but developing fast as e-commerce expands over the next three years, outpacing the UK and creating demand for new large distribution warehouses across the region.
“At the same time, as population growth rates rise in key European cities, competition for land intensifies – prompting a ‘race for space’, particularly for ‘last mile’ delivery on the outskirts of towns and cities.
“The new trust will exploit this supply-demand imbalance in the sector, as we believe this will support rental income and fuel growth.”
“Europe will also benefit from on-going progress in global trade and an evolution in the way goods are manufactured, sold and distributed in a more integrated way, driven by the major players such as Amazon, and couriers like DHL and Fedex,” he added.
