Morley and SachsenFonds capitalise on warehouse demand with launch of European Logistics Property Fund

Article date: 14 February 2008

Morley and SachsenFonds have launched a fund specialising in logistics and industrial assets, to capitalise on the active and growing logistics market in Continental Europe, and the increasing demand for high-quality warehouses.

Named LogAxes, the fund will hold approximately 60 per cent of its assets in the core German and Austrian logistics and industrial markets, with the remainder of the portfolio diversified across the growth markets of Poland, Hungary, Slovakia and the Czech Republic. 

A joint venture between Morley and SachsenFonds, LogAxes has already received equity commitments of €42 million and aims to raise a total of €157.5 million.

Both organisations bring strong track records in property fund management and asset procurement, and have worked together successfully on a number of other funds.

Morley's Andrew Hook, LogAxes Fund Manager, said: "Owing to the enlargement of the EU, the economic centre of the EU has moved eastwards. LogAxes is well positioned to take advantage of this eastwards shift in transport axes, along with continued growth in the European logistics sector. The European logistics sector is much less mature than the US and UK markets, and is also supported by a strong trading environment.

"While owner occupier rates in Europe are currently high, companies are increasingly outsourcing their logistics arrangements to third party specialists, creating a knock on demand for high-quality logistics warehousing.

"Investors in the fund will gain access to a portfolio of high-quality assets, with a target unitholder internal rate of return of between 9 and 10 per cent per annum over the 10 year life of the fund."

Florian Geistmann, head of Real Estate Acquisitions at SachsenFonds, said: "We aim to build a €450 million portfolio of high quality logistics assets, of which €63 million has already been invested in four assets based in Slovakia and Austria.

"Two further assets are committed for €43 million in the Czech Republic and Austria, and we have a strong pipeline of acquisition opportunities of which a significant number are located in Germany."

 Key features of the fund:

  • § 10 year lifespan from launch
  • § Target net distribution of between 5% and 6% per annum
  • § Target internal rate of return of between 9% to10% per annum over the Fund life.
  • § A diversified portfolio of high quality assets. To date,LogAxes has acquiredfourassets for €63m (1 in Slovakia and 3 in Austria) and has twounder contract for €43m (1 in Czech Republic and 1 in Austria).
  • § A highly experienced management team.

-ends-

For more information contact:
Angela Warburton
Corporate Communications
Telephone: 020 7809 8618

Notes to editors

  • LogAxes is an unregulated collective investment scheme for the purpose of the UK Financial Services and Markets Act. This press release is therefore intended only for those to whom the scheme can be promoted under the Act. As this is an unregulated collective investment scheme all or most of the protections provided by the UK regulatory system do not apply and compensation under the Financial Services Compensation Scheme will not be available.
  • The content of this press release should not be viewed as an offer or solicitation to subscribe for shares or units of the fund by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.
  • The value of an investment in the Fund and any income from it can go down as well as up. Investors may not get back the original amount invested.

Morley

  • Morley is the UK-based asset management business of Aviva plc.  Firms within the Morley group of companies manage £164bn (€223bn) from offices around the world as at 31 December 2007.  
  • Morley manages both institutional and retail funds. It also acts as investment manager for a range of retail investment funds, marketed in the UK under the Norwich Union brand and in Europe under the Morley name.
  • The property team manages in excess of £31bn (€43bn) of UK and European property assets.

Awards

  • 4 Best Property Manager - Financial News Excellence in Institutional Management Awards, Europe 2007
  • 4 Morley ranks no.1 fund manager in the Thomson Extel SRI Survey, 2007
  • 4 Property Manager of the Year, UK Pensions Awards 2007
  • 4 Morley's G7 Fund awarded Fixed Income Hedge Fund of the Year, Eurohedge Awards 2006
  • 4 Property Fund Manager of the Year, Pensions Management Awards 2006
  • 4 Property Fund Manager of the Year, Property Week Awards 2006
  • 4 Central European Property Awards 2005 - Outstanding Company of the Year & Investor of the Year
  • 4 UK Pensions Awards 2005 - Property Manager of the Year

SachsenFonds

  • SachsenFonds is a Munich-based initiator and asset manager for closed-ended funds that invest in real estate, renewable energy and airplane leasing. Having offices in Munich, Prague, Warsaw and Sydney, the company that is part of KanAm Group has € 4.7bn assets under management and acts for both private and institutional investors.

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