Hamburg, 19 June 2023 – Aquila Capital announces that the Aquila Capital Southern European Logistics S.A. SICAV-RAIF fund (ACSEL) has built a seed investment portfolio consisting of three energy efficient logistics real estate assets. Two of these assets are located in Portugal – Azambuja (net lettable area 111,620 m2) and Magellan (net lettable area 13,518 m2) – and one is located in Italy – Tortona (net lettable area 51,600 m2). In addition, the fund now has two further assets in Spain from its initial pipeline under exclusivity arrangements, furthering the consistent deployment of investors’ capital.
This open-ended investment fund aims to generate stable returns through a diversified portfolio of newly built, sustainable and ESG compliant logistics properties in Southern European countries, which include Italy, Spain and Portugal. It invests in properties in strategic locations built and operated to high standards of energy efficiency and environmental considerations. These properties generate a solid rental income.
Selection criteria include the proximity of an asset to transportation hubs, to minimise carbon emissions related to transport. Other criteria include compliance with sustainable building standards, such as BREEAM or LEED certifications, and the installation of rooftop photovoltaic panels. As such, the fund directly contributes to the global energy transition.
The three assets in the fund’s portfolio have a diversified tenant base, a weighted average unexpired lease term (WAULT) of 18 years and are fully let. The fund has secured a long-term bullet loan at favourable terms to finance its two Portuguese assets and, as a result, has overall portfolio leverage of 30%. This is considerably below the fund’s target leverage of 45%.
Following these three acquisitions, almost one third of the fund’s committed capital of EUR 360 million has already been invested since the fund was launched in Q4 2021. Due to a substantial pipeline of potential investments, which includes both Aquila Group’s own development projects and third party projects, fund management is planning further acquisitions and expects to deploy most of the fund’s committed capital this year. The fund’s target investment volume (GAV) is EUR 1.5 billion with a maximum debt ratio (LTV) of 50%.
As a result of these positive developments, investors are expected to be given the opportunity to invest further capital in the fund in the second half of 2023.
Till Schulz-Eickhorst, Managing Director & Head Fund Management Sustainable Infrastructure at Aquila Capital, comments: “Spain, Italy and Portugal offer substantial catch-up potential in logistics real estate compared to Western Europe. These countries are showing significantly above-average growth rates in online trade, resulting in an immediate demand for space which can be used for logistics real estate. Our strong presence in all three markets means we have robust local competencies and can access local networks. This enables us to identify new projects and develop investment opportunities with high return potentials.”
Lars Meisinger, Head of Client Advisory International at Aquila Capital, says: “Fostered by supply chain considerations and re-shoring initiatives, further developments in logistics properties have become vital to strengthening economic resilience. These fundamental conditions have already led to a huge increase in investor interest. With our Southern European Logistics Fund, we offer clients a differentiated solution for sustainable infrastructure investments supported by our strong local presence which is focused on some of the fastest growing markets in Europe.”