Global Logistics Investment and Temperature-Controlled Real Estate Market Analysis
Temperature-Controlled Cold Storage Industrial REITs Lineage Logistics Plans for $30 Billion IPO in 2024, having already raised more than $13 Billion capital supported by investment fund Bay Grove Founded by Ex-Morgan Stanley Investment Bankers Adam Forste & Kevin Marchetti. This strategic move aligns with the fact that the logistics sector has increasingly become one of the most crucial sectors to shape current economic activities.
E-commerce Growth and Global Market Projections
The demand for logistics infrastructure is driven by massive shifts in global trade. According to Statista, global e-retail sales amounted to 2.3 trillion USD and projections show a growth of up to 4.48 trillion USD by 2021. With the continuous rise of fuel shipments and e-commerce, logistics funds in recent years have attracted a large number of investors due to their stability and high yielding returns.
Strategic Platform and Infrastructure in India
Investment activities are expanding rapidly in the South Asian region. DP World and India’s National Investment & Infrastructure Fund plan to jointly invest up to $3 billion in the South Asian nation. The companies set up a platform to invest in ports, terminals, transportation and logistics businesses in India, using the $3 billion of equity to acquire assets and develop projects. According to the statement, DP World’s investment platform will also look at opportunities beyond sea ports such as river ports and transportation, freight corridors, port-led special economic zones, inland container terminals, and logistics infrastructure including cold storage.
European Logistics Expansion and Industrial Storage
In the European market, specialized investment managers are reaching new milestones. Realterm, a global logistics investment manager, announced the successful final closing of its closed-end, value-add, pan-European Realterm Europe Logistics Fund II (RELF II). This fund is the only pan-European fund series focused exclusively on the transportation-advantaged industrial outdoor storage (IOS) sector. RELF II’s over €470 million in capital commitments substantially exceeded the fund’s €400 million target, with participation from 17 U.S. and European institutional investors.
Regional urban logistics also show strong momentum. A portfolio of seven units totalling 55,780 sq ft on a Northampton industrial park has been acquired by a £150m multi-let urban logistics investment fund. Managed by property investment company JR Capital and asset manager Chancerygate, the fund has acquired the facilities located on Crow Lane Industrial Park. The seven units range from 3,225 sq ft to 28,665 sq ft, and current occupiers include:
- Building materials supplier Wolseley UK
- Independent electrical wholesaler Midshires Electrical and Lighting
- Frozen and chilled food same day delivery service Route 1 Fulfilment
Key Logistics Investment Initiatives
| Entity / Fund | Investment Type | Capital / Target |
|---|---|---|
| Lineage Logistics | Cold Storage REIT IPO | $30 Billion (2024 Plan) |
| DP World & NIIF | India Logistics Platform | $3 Billion |
| Realterm (RELF II) | Pan-European IOS Fund | €470 Million |
| JR Capital & Chancerygate | Urban Logistics Fund | £150 Million |
