Fiera Real Estate UK raised more than £225m from investors for its logistics development fund after the second close.
Fiera launched the fund in July 2022 and can leverage up to 35% taking the portfolio capacity to £350m across the two-year investment window.
The fund’s investment requirements are for well connected sites of more than two-acres with the ability to deliver small-to-mid-box developments of up to 250,000 sq ft.
The fund is currently on site with five assets, which will deliver circa 400,000 sq ft of Grade A logistics floorspace across 18 units, and it has five more sites under offer.
Chris Button, fund manager and head of investment management at Fiera, said: “I am delighted to confirm that we have completed the second close for our logistics fund bringing the total capital commitments to over £225m. The recent volatility in the market has created good buying opportunities for funders like us that are well capitalised, can take planning and construction risk and can transact quickly.
“We have increased our focus on the logistics sector over the last three years, developing over 9m sq ft of logistics assets alongside our operating partner network of nine property companies. This development expertise offers significant de-risking and value creating qualities for our investors, while our strategic focus on Grade A development from the ground-up means we can attract best-in-class tenants at rental levels reflecting that. We intend to leverage this experience and we remain very active whilst others are sitting on the side lines.”
Charles Allen, head of European real estate at Fiera, added: “Despite the capital-constrained market, we are still able to raise high volumes of capital and I am excited to harness the opportunities that the second close will allow us to capitalise on. Our strong track record of creating space that meets the evolving needs of our occupational customers will in turn create value for our investors.”
