Logistics and warehouse assets deliver excellent returns for members

Published 30 August 2021

Europa Capital has completed the sale of a €270m ($433m) Dutch and German portfolio of urban logistics and warehouse assets, generating increasingly positive returns for fund members.

Europa Capital is a dedicated real estate investment manager, who on behalf of investors like LGIAsuper, focuses on the European markets and specialises in both equity and debt investment to maximise value in all property classes across Europe. 

In July 2021, the assets were sold to Strategic Industrial Real Estate, Arrow Capital Partners’ platform backed by Cerberus.

The industrial and logistics sector is experiencing a significant boom, as consumers post global lockdowns have grown accustomed to and continue to embrace the convenience of online shopping. 

LGIAsuper and Energy Super Chief Investment Officer Troy Rieck said the investment was a divergence from the Fund’s usual buy and hold strategy of Australian real estate. 

“Urban logistics and warehouse assets are value-adding real estate; you get a different set of returns and exposure to different types of real estate to what we can get here in Australia,” Mr Rieck said.

“Businesses want to store stuff and need to be close to the distribution centres. A classic example of this is Woolworths and Coles’ fulfilment centres that store supplies to restock their frontlines stores every day.”

Mr Rieck said the latest returns from the Europa Capital logistics portfolio were strong evidence that our Fund’s strategy of investing in diverse assets was an effective form of risk management.

“The Fund remains a big believer in the benefits of diversification, we have developed diversified portfolios with a mix of assets including shares, property, infrastructure, cash, bonds, and alternatives, to cushion your returns against equity market volatility,” he said. 

“Purchasing complementary assets in overseas markets allows us to invest money in initiatives here in Australia where our members live and work.”
For more information on the fund’s investment strategy, please visit www.lgiasuper.com.au or www.energysuper.com.au.