Fiera Real Estate Logistics Development Fund

Fund Factsheet

Logistics Requirements

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Fund Type

Closed Ended

Target

>15% IRR

Equity Committed

£225m

Sectors

Investment Approach

The Fiera Real Estate Logistics Fund UK (“FRELD”) is a closed-ended real estate investment management fund that launched in June 2022. It takes advantage of the unprecedented occupier and investor demand for logistics real estate.

The investment objective is aiming to deliver a >15% IRR generated from ‘alpha’ outperformance by development, leasing and sale of properties, using low leverage.

Target rates are not guaranteed. Inherent in any investment is the potential for loss.

Fund Factsheet

Key Strategies

The Fund is well position to exploit its strategy because:

Structural Change:

Growth in e-commerce and Brexit has changed supply chain networks.

Market Fundamentals::

High levels of occupier and investor demand has led to constrained supply of assets.

Access to deal flow:

Our 9 regional property companies provide access to deal flow.

Track Record:

We have developed >9.8million sq.ft of industrial assets since 2018.

Themes

The vehicle benefits from the following market trends:

Ecommerce growth
changing
supply chains

High demand
for new urban
logistics

Acute
undersupply

Strong industrial
returns forecast

These themes exploit Fiera Real Estate’s vertically integrated business model, combining investment management with an operating platform of nine specialist property companies across the UK providing superior access to stock across the market.

About the Fund

Investment strategy is focussed on:

Grade A small to mid-box units
FRELD develops <250,000 sq.ft urban logistics buildings with a Grade A specification. Planning, construction and leasing risk are borne by the vehicle. All properties are be sold at the completion of the business plan.
Assets located in densely populated areas
The fund’s assets are located in major metropolitan areas, such as London, Birmingham, and Manchester. Concentrated in locations supported by transport infrastructure and within 45 minute drivetime catchments of >1.0m people.
Strong ESG Credentials
Focus on creating assets with best-in-class ESG credentials to support the transition to a low-carbon economy. All new developments will have minimum targets such as BREEAM ‘Excellent’ and EPC ‘A’ ratings.
Unique Access to Deal Flow
Our operating partner network provides comprehensive geographic coverage of the UK market providing unique access to deal flow.

Examples of Recent Logistics Assets

Dartford Works, Dartford

1.8-acre site in Dartford with construction now underway for a two-unit, 40,000 sq ft Grade A scheme.

Xpanse 120, Oldbury

122,000 sq ft Grade A scheme developed on a 6.3-acre site in Oldbury. Let and sold within one month of Practical Completion.

Ho11A, Houghton Regis

5-acre site in Houghton Regis with construction underway for a six-unit, 100,000 sq ft Grade A scheme. Forward-funding agreed in November 2021.

View More Assets

At Fiera Real Estate, we are committed to being responsible, resilient and engaged.

We recognise the importance of integrating environmental, social and governance (ESG) issues within our investment management processes. We believe that we have a responsibility to our investors to fully understand the impact of these issues and to embed ESG considerations into the way we manage FRELD so that we may drive long-term value and mitigate risk.

Value Add ESG Update