Fiera Real Estate UK has announced the final close of the Fiera Real Estate Logistics Development (FRELD) UK fund, which has the capacity to invest up to £420m GDV with leverage of up to 50%.
The fund’s investor base comprises a diverse mix of LGPS and pension funds from the US, Europe and Asia, alongside proprietary co-investment.
FRELD is already 85% deployed after acquiring 10 assets and the fund is actively seeking additional opportunities to acquire small- to mid-box logistics developments of up to 250,000 sq ft in major metropolitan areas anchored by strategic transport infrastructure.
Following the successful close of FRELD, Fiera will start fundraising for its second fund imminently, which will replicate the strategy adopted in the first fund and target institutional investors globally.
Charles Allen, head of European real estate at Fiera, said: “The successful close is a vindication of our differentiated strategy and portfolio performance to date, and we look forward to seeing this progress further. We believe our strategy puts us in an excellent position to capture this vintage in UK logistics, which is characterised by strong dislocation from a pricing and supply perspective, as well as surging investor and occupier demand.
“By leveraging our unique operating partner network and in-house planning and development capabilities, we provide investors with access to superior deal flow and de-risked investments from both a construction and sustainability perspective. Our strict focus on Grade A development in supply-constrained urban conurbations also offers upside through rental growth prospects and comes at a time when early signs of recovery are emerging in the occupational market.”
