Newport Logistics Fund, an investment company, announced the launch of Newport Logistics Fund III, a pan-European fund that will finance the development, leasing and sale of sustainable logistics properties.
The investment company, which is part of the Panattoni group, is aiming to raise €300 million for its third fund to develop 10-12 facilities across Europe. It has two projects already secured, the first, a speculative development north of London in the UK, and the second, a build-to-suit development in Malaga, Spain. Further investments are in the process of analysis and selection in the rest of Europe.
The launch of Newport Logistics Fund III follows the successful investment of the first two Newport funds. Newport Logistics Fund I raised €50 million in 2022 and invested in three modern logistics facilities in London, Amsterdam and Łódź. The fund is currently completing the construction of all the facilities and is in the process of selling its first asset.
Newport Logistics Fund II was set up in March 2023 and has now invested funds in projects in Austria, the Netherlands, France, Poland and Germany with a gross development value of €200 million.
All Newport projects are to meet strict sustainability standards. Each facility is designed in accordance with ESG goals and Article 8 of the EU SFDR regulation. All projects are BREEAM certified (or equivalent).
The Newport series of funds finance the full development cycle(land acquisition, construction, lease and sale) of modern logistics warehouses in Europe and aim to generate a return of 15% a year. They are part of the Panattoni group. Capital is sourced from professional investors, principally high-net-worth individuals and family offices from the EU, Switzerland, the UK, the US and the Middle East
Daniel Raemy, Member of the Supervisory Board and Investment Committee, said: “Our strategy for the future includes expanding our presence in Europe with more projects as a result of raising more capital”.
Szymon Ostrowski, Managing Director, said: “Our goal is to achieve the returns expected by investors at 15% per year. Our priority is also to develop projects that have a positive impact on the environment. This meets the demand of tenants and the target warehouse owners to whom we sell our facilities.
“Investors appreciate the diversification of assets in strategic locations and the fact that they are getting the best projects and above-average returns. The confidence of investors, shown in less favourable economic conditions, is a confirmation that we are able to select the best projects to deliver the promised returns.”
