Fiera Real Estate launches new logistics development fund

Published July 13, 2022

Fiera Real Estate UK (“FRE UK”) is pleased to announce the launch of the Fiera Real Estate Logistics Development Fund UK (“FRELD”) which has completed its first close with c.£180m of equity committed from investors.

FRELD is targeting a total of £250m and is the firm’s first logistics sector-focussed development vehicle which will take advantage of the unprecedented occupier and investor demand for logistics real estate. It will have a maximum five-year duration with a two-year investment window, as well as a strong focus on ESG with all projects targeting net-zero carbon construction.

FRELD will utilise the expertise of FRE UK’s unique pan-UK operating network of eight property companies, which provide extensive access to local knowledge and deal flow in all key regions. The combination of its operating network and clients’ institutional capital offers FRE UK a significant advantage in sourcing projects and delivering on its ambitious logistics pipeline.

FRE UK has launched FRELD to take advantage of the record transitional buying opportunities created by Brexit and the Covid-19 pandemic. The demographic shifts, climate crisis, technological progression and changing customer expectations have been key trends disrupting existing real estate. This has led to the emergence of new opportunities to create real estate that is fit for purpose. FRELD is well positioned to exploit these opportunities within the industrial and logistics market and will build on the firm’s strong track record. FRE UK has undertaken development of similar assets in its series of UK opportunity funds which has raised over £780m since 2003. Alongside its operating network, the firm has increased its focus into the logistics sector in the last few years, developing 6m sq.ft of logistics assets since 2019.

FRELD will develop new units of up to 250,000 sq.ft, all built to a Grade A specification, located in major metropolitan areas and supported by prime transport infrastructure. Chosen sites will typically have one million people within 45-minute drivetime catchments. All assets in the portfolio will meet rigorous environmental and social requirements set by FRE UK’s Sustainable Design Brief, which align with its ambition to drive positive change and contribute to a low carbon economy.

Chris Button, Portfolio Manager of FRELD, commented “Levels of occupier and investor interest for last mile logistics real estate continues unabated and our new logistics fund is well positioned to take advantage of the demand that we are seeing. Our strong track record of creating space that meets the evolving needs of our occupational customers will in turn create value for our investors.”

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