Italian asset manager DeA Capital Real Estate’s German arm has announced the launch of the UrbanMile Fund, a new European investment vehicle targeting a size of €700 mln.
The ESG vehicle will focus on inner-city micro-logistics properties in major European cities, particularly targeting flexible commercial space. The fund, which will have a gearing below 60%, will target a distribution yield over its ten-year term of 5.5% per annum with a core plus/value-add risk profile.
The fund is expected to hold its first closing in the 2nd quarter of 2022.
‘The growing e- and q-commerce market as well as the stricter requirements due to climate policy will have a major impact on access to city centres,' commented Wolfgang Speckhahn, who late last year set up the German business of the Italian asset management group DeA Capital Real Estate.
He added: 'The changing customer behaviour towards short delivery times of well under one hour from the order as well as the foreseeable limited access to city centres for exclusively small-scale transport systems with electric drive will demand new, central logistics solutions. Inner-city areas for micro-logistics use are thus gaining in importance, especially in European metropolises. DeA Capital Real Estate's pan-European platform and local teams provide the necessary in-depth local market knowledge and a successful and success-critical network for identifying off-market opportunities as well.'