• Three assets in Netherlands & Spain purchased for an undisclosed price, accounting for c. 118,000 square metre (sqm) gross leasable area (GLA).
• Refurbishments aimed at delivering high-quality net zero carbon logistics properties.
• Demand for net zero carbon properties is growing while availability limited, driving strong rental growth.

Germany, 9 December 2024: Fidelity International (“Fidelity”) today announces the inaugural purchase of three assets in the Fidelity Real Estate Logistics Impact Climate Solutions Fund (the “LOGICs” fund).

The LOGICs fund, Fidelity’s second climate impact fund, invests solely in the logistics sector across core Western European markets. It follows a brown-to-green approach of acquiring existing assets with the intention of refurbishing and repositioning to deliver high quality assets that are capable of being operated at net zero carbon (NZC). The strategy targets value-add returns and will focus refurbishments on energy efficiency improvements, with the aim of delivering best-in-class assets that are in demand from occupiers. In addition, through the installation of solar panels, occupiers have the opportunity to generate and deliver their own source of green energy. 

The three assets, located in the Netherlands and Spain, are highly suitable for an “impact” type of renovation which will bring the buildings to not only the highest sustainability standard but also to NZC capability. Demand for NZC properties from occupiers in the prime locations identified is growing rapidly while supply of quality logistics assets is constrained, leading to strong rental growth for well-located, green warehouses. With the buildings being bought at an attractive discount, Fidelity believes it can deliver outsized returns for modest risk over the next few years.

Tilburg & Roermond, Netherlands

The Netherlands is a crucial gateway to the European logistics market, with 244 million consumers within a 1,000km radius and identifies as the most established and mature logistics market in Europe¹. Tilburg and Roermond are excellent, well-known logistics sub-markets in the South of the Netherlands, directly on the borders of Belgium and Germany respectively, giving key access for importing and exporting goods. Both assets are well connected, with excellent accessibility to major highways. 

The area of Tilburg has received consecutive awards as the number one logistics hotspot in the Netherlands from 2019 - 2022². The first asset at Industrial Park Katsbogten, is five minutes from Tilburg centre. Built in 2007, the site has approximately 44,500 sqm of gross leasable area (GLA). The property is currently leased to DB Schenker, Bakker Logistiek and Van de Ven Bouw. 

The second asset, the industrial estate “Roerstreek”, is situated on the south side of the city in Roermond. It is strategically positioned with excellent connections to major highways connecting Netherlands and Germany, as well as the presence of both a barge and rail terminal in Born. Built between 1985 and 1998, the property comprises of approximately 18,000 sqm of GLA. The property is currently leased to UPS. 

The two assets in The Netherlands are part of a larger European portfolio currently being acquired off-market by the LOGICs fund, the completion of the other assets is anticipated in early 2025.

Ontigola, Spain 

Madrid’s eight million population is growing rapidly, with 100,000 - 150,000 new habitants in the city every year³. The projected e-commerce growth in Spain is also 10% per annum to 2029, outpacing the European average of 8%³. These facts combined means the area offers appealing growth prospects for the logistics sector. Ontigola, Spain is strategically located in the third ring of Madrid’s Southern Corridor, 40-minute drive from Madrid city centre, and an ideal location for regional and national distribution thanks to the direct access to A4 and R4 highways and easy connections to A3 and A42 highways. 

The logistics park, acquired from global diversified real estate investment manager Barings on behalf of a core real estate strategy, is composed of two buildings offering 55,600 sqm rental area on an 81,300 sqm site. It provides market standard, modern logistics specifications with a clear ceiling height of minimum 10m, almost one loading dock/gate per 800 sqm warehouse area and a floor load capacity of 5 t/sqm. The property is currently fully leased to two Third-Party Logistics (3PL) tenants.

Neil Cable, Head of European Real Estate Investments, Fidelity International comments: “Following the successful first close for the LOGICS fund which raised €200m in capital commitments earlier this year, and with plans for a second close well underway, we are excited by the strong pipeline of attractively priced assets in the market at the moment, with all three newly acquired assets purchased at attractive entry points with solid market fundamentals. The Netherlands and Spain are two core focus areas for us, but we are also exploring further opportunities across Western Europe including the UK, Germany, France and Belgium, with appealing prospects identified in our target markets.”

In the Netherlands, Greenberg Traurig (legal), JLL (valuation), CBREBBN (technical), C2N (environmental, social & governance) and BDO (tax) acted on behalf of Fidelity. The transaction was brokered by CBRE. 

In Spain, DLA Piper (legal & tax), Arcadis (technical and environmental, social & governance), CBRE (valuation), acted on behalf of Fidelity. The transaction was brokered by Savills and BNP.

ENDS

¹ https://hollandinternationaldistributioncouncil.com/, 16 March 2023
²  https://www.logistiek.nl/, 30 October 2023
³ Valuation JLL 2024
 

About Fidelity International

Fidelity International offers investment solutions and services and retirement expertise to more than 2.8 million customers globally. As a privately held, purpose-driven company with a 50-year heritage, we think generationally and invest for the long term. Operating in more than 25 locations and with $925.7 billion in total assets, our clients range from central banks, sovereign wealth funds, large corporates, financial institutions, insurers, and wealth managers, to private individuals.

Our Global Platform solutions business provides individuals, advisers and employers with access to world-class investment choices, third-party solutions, administration services and pension guidance. Together with our Investment Solutions & Services business, we invest $645.4 billion on behalf of our clients. By combining our asset management expertise with our solutions for workplace and personal investing, we work together to build better financial futures. Data as of 30 September 2024. Read more at fidelityinternational.com.    

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