The continuing online retail boom helped fuel a 4% rise in portfolio value for Aberdeen Standard European Logistics Fund in the last quarter.
The company, which owns ‘last mile’ parcel delivery warehouses mainly in the Netherlands, Germany, France and Spain, said strong demand for such properties had boosted its portfolio. During the three months to 31 December, ASELF’s net asset value (NAV) per ordinary share increased from €1.07 (94.95p) to €1.11 (94.21p) during the period when the euro lost ground against the pound.
It bought two logistics warehouses leased to delivery giant DHL – one in Warsaw, Poland, for €27.5 million, providing a net initial yield of 5.64%, and one in in Coslada, Madrid, for €9.2 million, providing a net initial yield of 5%.
The total property portfolio value at 31 December was €350.1 million.
ASELF chairman Tony Roper said that with ecommerce accounting for nearly 10% of retail sales in Europe, there was scope for the company to acquire more properties. The firm sees greater potential for growth in Europe than in the more mature UK logistics property market.
He said: “The Board and the Investment Manager continue to believe that the European market offers attractive opportunities as the logistics segment continues to grow. The sector increasingly benefits from the rapid take-up of logistics facilities, largely helped by the growth in ecommerce, and the long inflation-linked leases that tenants are prepared to sign up to in many parts of Europe. As we have previously stated, it is this strategy which is focused on investments on the Continent with attractive pricing, indexation of leases as standard and lower financing costs that underpins our investment policy.
“We see the size segment that we are invested into as the most attractive and liquid part of the logistics sector with the urbanisation trend across Europe driving demand and growth. Our Investment Manager continues to work on behalf of shareholders to find value and promote ESG principles through the addition of green leases and the installation of solar panels. Such ESG initiatives can only help drive a better understanding of our tenants and their requirements and enhance the working and surrounding environment to further develop relationships.”
