Elite Logistics Fund (2B)

A €480 million fund investing in European logistics and e-commerce facilities.

FundReal Estate
Target returnActual return
12% per annumN/A
FundReal Estate

Now trading on ADDXStarted on 21 December 2020

Investment highlights

  • An industrial real estate fund investing in logistics (storage and distribution) facilities

  • Fund focuses on the e-commerce, food storage and infrastructure sectors

  • Fund consists of 11 fully completed income-producing assets in the UK and Poland, strategically located within China’s Belt and Road initiative

  • New acquisitions planned in the UK, Germany, Spain and the Czech Republic

  • All but one of the current properties are freehold or virtual freehold

  • Tenants consist of large global and regional MNCs with strong tenant covenants, including DHL, Next, Pepsi and FM Logistics

  • High yield strategy: attractive cash-on-cash yield of c. 8-9%, and clear exit strategy with IRR c.12%

  • The fund achieved its first close of c. EUR 68m on 11 March. It raised an additional c. EUR 10m in June 2020

  • More about this investment

  • Compared to other forms of industrial real estate, logistics facilities have more generic designs and specifications, which are easily accepted by a wider range of tenants

  • Good geographic positioning along trade routes. Location is typically close to major highways, airports, seaports and railways to facilitate faster distribution

  • Demand for warehousing is driven by trade and modernization

  • Varies in sizes but the breakdown of the space is typically 80% storage/warehouse space and 20% office space

  • e-Commerce and cold storage logistics assets are specialized and highly automated and usually require large capital expenditure investments from the tenants

Trends impacting the logistics sector

e-commerce growth

As the e-commerce industry continues to grow, demand for logistics real estate has been increasing. Bigger warehouses are being built and e-fulfilment centres are seeing an increasing need to expand in order to be efficient. Research done by Prologis shows that online retailers need approximately 1.2 million sq. ft. of warehouse space per $1billion dollars of online sales on average, which is 3x the distribution centre space required for traditional brick-and-mortar retailers.

Changing consumer expectations

Consumer expectations have evolved over time, and they are now in favour of businesses that can fulfil faster delivery times and lower-cost shipping. This has led to a shift in favoured logistics locations, which are now moving towards major population centres and transportation hubs, away from their previously more remote locations. Competition for last-mile facilities has been particularly active and it is expected that this trend will continue to grow.

Transformation of supply chains

With the increase in online sale growth, the supply chains of growing retailers have to constantly evolve to meet the increasing demands. One way to do so is by leveraging on 3PLs with e-fulfilment capabilities. As online revenues increase, retailers will have to also consolidate their fulfilment operations into bigger sites or acquire new warehouse sites. Retailers are also forced to manage their transportation costs by transforming their supply chains and choosing locations with close proximity to transportation networks. Total fulfilment costs can amount to 15% or more of revenue and these fulfilment costs continue to be on an upward trend.

Technological advancement

Technology and growing demand for same-day delivery will further impact on location, size and fit out of logistics properties. The rise of automation will also affect logistics facilities, transforming the labour component and altering the way. Operators configure and build their warehouses and distribution centres.

About Elite Partners Capital

The trust is set up to invest in real estate across Europe. Elite Logistics Fund is an unregistered business trust under the Business Trusts Act, Chapter 31A of Singapore.

The manager of the trust is Elite Partners Capital Pte. Ltd. The manager is incorporated in Singapore and is currently regulated by the Monetary Authority of Singapore (MAS) as a holder of a Capital Markets Services Licence to conduct the regulated activity of fund management in Singapore. The trustee of the trust, Perpetual (Asia) Limited, is licensed as a trust company under the Trust Companies Act, Chapter 336 of Singapore.

Registered Address Of The Fund Manager

9 Temasek Boulevard, Suntec Tower Two, #17-01, Singapore 038989

Key people

Enoch Tan

Portfolio Director

About Elite Partners Capital

The trust is set up to invest in real estate across Europe. Elite Logistics Fund is an unregistered business trust under the Business Trusts Act, Chapter 31A of Singapore.

The manager of the trust is Elite Partners Capital Pte. Ltd. The manager is incorporated in Singapore and is currently regulated by the Monetary Authority of Singapore (MAS) as a holder of a Capital Markets Services Licence to conduct the regulated activity of fund management in Singapore. The trustee of the trust, Perpetual (Asia) Limited, is licensed as a trust company under the Trust Companies Act, Chapter 336 of Singapore.

Key people

Enoch Tan

Portfolio Director

Registered Address Of The Fund Manager

9 Temasek Boulevard, Suntec Tower Two, #17-01, Singapore 038989


Disclaimer: The information above has been provided by Elite Partners Capital Pte. Ltd. The contents of the above have not been verified by the Exchange and the Exchange assumes no responsibility for the contents above, including the accuracy, completeness or correctness of any of the information, statements or opinions made or reports contained in the content above. Target return is not necessarily indicative and does not guarantee actual return. This is not an advertisement making an offer or calling attention to an offer or intended offer.

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