On June 30, 2020, Verdion European Logistics Fund 1 SCSp held its final close with total equity commitments of €137 million. Utilising targeted gearing of 50%, the fund seeks to acquire urban logistics assets in edge-of-town or in-fill locations that facilitate swift product delivery to major cities/towns, meeting the last-mile requirements of today’s economy.
Verdion formed the fund to execute a new investment strategy, targeting value-add/core-plus investments in Germany, the Nordics, Benelux and other select markets across Europe, seeking to generate a 12-13% net IRR for its investors, as well as a 5% portfolio-level distributable yield. To date, it has made four investments across Germany, the Netherlands and Czechia.
VELF 1 attracted capital from several new top-tier, institutional investor relationships. Investors include foundations, public and corporate pension funds and other institutional investors from Europe and the United States.
“As demand for online shopping accelerates, we see continued opportunity to acquire urban logistics assets in key corridor locations throughout Northern and Central Europe at an attractive entry basis not discernible to less technically knowledgeable buyers,” said Michael Hughes, CEO of Verdion. “By focusing our sector specific knowledge to the execution of this investment strategy we firmly believe that stronger performance is still to come.”