Newport Logistics launches third EU fund with €300M goal
Newport Logistics Fund, a Luxembourg-based private equity real estate fund, announced the launch of its third pan-European logistics fund. This initiative aims to raise 300 million euros (roughly 435 million Canadian dollars) for the development of 10 to 12 facilities across Europe. As part of the Panattoni group, the fund plans to continue its risk diversification strategy.
As Newport Logistics Fund reported in its press release from October 3, 2024, the fundraising success is partly due to offering investors a unique allocation tool for logistics construction on a European scale through well-thought-out geographical diversification of projects.
The fund emphasizes that diverse entities, including wealthy individual investors, family businesses, and investment funds from the European Union, Switzerland, the United Kingdom, the United States, and the Middle East have recognized its activities.
Past successes of Newport Logistics Fund
Newport Logistics Fund boasts impressive results from its previous initiatives. The first fund, Newport Logistics Fund I S.C.A. SICAV-RAIF, registered in 2022, raised and invested funds in three modern logistics facilities within ten months. These facilities are located in London, Amsterdam, and Lodz. These assets' total gross asset value (GAV) amounted to 100 million euros (approximately 145 million Canadian dollars).
The second fund, Newport Logistics Fund II S.C.A. SICAV-RAIF, was established in March 2023 and succeeded. According to the company, "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." The value of these projects reached 200 million euros (around 290 million Canadian dollars) GAV.
Szymon Ostrowski, the fund's managing director, comments, "Investors appreciate the diversification of assets in strategic locations and the fact that they are getting the best projects and above-average returns." He also adds, "The confidence of investors, shown in such less favourable economic conditions, is a confirmation that we are able to select the best projects to deliver the promised returns."
Future plans and sustainable development
Newport Logistics Fund III S.C.A SICAV-RAIF, the company's latest initiative, aims to acquire 300 million euros (roughly 435 million Canadian dollars) for developing 10 to 12 facilities across Europe. The fund has already secured two projects: one north of London in the United Kingdom and another BTS type in Malaga, Spain. Further investments are being analysed and selected in other European Union countries.
Daniel Raemy, a member of the supervisory board and investment committee, talks about the strategy for the future. "Our strategy for the future includes expanding our presence in Europe with more projects as a result of raising more capital," he emphasizes.
Notably, all projects carried out under the Newport Logistics Fund meet strict sustainability standards. Each facility is designed in accordance with ESG goals and Article 8 of the EU SFDR regulation. Additionally, all projects will be BREEAM certified or equivalent.
Szymon Ostrowski emphasizes the importance of sustainable development in the fund's strategy. "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," he says.
