Investor information

Log4Real has a “back-to-back” investment model, where we secure development land, contract with suitable tenants and partner with institutional investors in a fully integrated process before we start construction.

Over the past two decades, there has been a dramatic transformation in global trade and the industrial/logistics real estate market. Today, these facilities lie at the heart of rapidly evolving and expanding global supply chains and trade networks, serving as vital cogs in producing, processing, storing and moving billions of products across multimodal transportation networks worldwide at speeds once thought unimaginable. More recently, this market has been given a further huge boost by the rise of the Internet and the rapid evolution of e-commerce, with its myriad of possibilities.

Investment Proposition

Institutional investors have flocked to industrial/logistics assets attracted by the extremely positive growth story, underpinning rising rents, and the sector’s attractive income yields in an ultra-low yield investment world. While this weight of capital has generated rapid yield compression, particularly in core markets, the sector has maintained a positive yield spread to prime office and retail markets. Investor concerns about rapid obsolescence in the industrial/logistics market due to short development lead times are also fading for the type of top-end warehouses that Log4Real is building, because the level of investment required in high-tech processes ensures longer term commitment and leases from the tenant.

Log4Real has a “back-to-back” investment model, where we secure development land, contract with suitable tenants and partner with institutional investors in a fully integrated process before we start construction.

In the general market environment we do not retain our projects for extended periods in order to maximise the length of the rental income streams acquired by our investors, but we can continue to manage the assets after sale if required.

The scalability of our model offers larger investors an unprecedented opportunity to build a well-diversified risk-adjusted portfolio of prime industrial/logistics assets in top locations across Europe.

Target 10-year indexed leases provide long-term stable rental streams, well matched to the liabilities of pension funds and insurers, with a built-in inflation hedge.

We would expect investments to be in a minimum portfolio of three to four assets to achieve risk-adjusted diversification benefits.