DeA Capital Real Estate Germany launches the DeA UrbanMile Fund with a focus on inner-city micro-logistics properties in major European cities
DeA Capital Real Estate, one of the leading pan-European alternative investment managers, launches the UrbanMile fund, which pursues an alternative and innovative investment strategy.
The UrbanMile fund aims to invest in flexibly usable commercial space that is not currently used as such: Inner-city commercial properties with high flexibility, mixed use and stable cash flow, as well as the ability to adapt the use to both the needs of customers and sustainable urban infrastructure. The handpicked selection of predominantly existing properties enables a reliable and sustainable return. The actual return potential is achieved by (re)using them as urban-flex spaces, which meet the emerging demand for flexible use concepts in major European cities.
With this innovative and sustainable approach, the Luxembourg-based SICAV- RAIF fund classifies as a “light green” product according to Article 8 of the Disclosure Regulation. For each of the properties acquired, an individual sustainability concept is drawn up on the basis of the ESG due diligence prepared during the acquisition process, with the aim of decarbonising the portfolio. The decarbonisation target is an 80% reduction in CO2 emissions in relation to the 2° target of the Paris Climate Agreement. This meets the strict requirements of the Disclosure Regulation and EU Taxonomy on Sustainable Business Activities.
“The growing e- and Q-commerce market as well as the tightening requirements due to climate policy will have a major impact on access to city centres. The changing customer behaviour towards short delivery times well below one hour from order as well as the foreseeable limited access to city centres for exclusively small-scale transport systems with electric drive will require new, central logistics solutions. Inner-city areas for micro-logistics use are thus gaining in importance, especially in European metropolises. DeA Capital Real Estate’s pan-European platform and local teams provide the necessary deep local market knowledge and a successful and mission-critical network to identify off-market opportunities as well,” says Dr. Wolfgang Speckhahn, Managing Partner DeA Capital Real Estate Germany.
UrbanMile is aiming for a total fund volume of around 700 million euros with a debt ratio that should be well below 60 %. The target distribution yield over the fund’s ten-year term is 5.5% p.a. with a core plus/value-add risk profile. The first closing is scheduled for the 2nd quarter of 2022. Investors can participate with a minimum subscription of 10 million euros.
DeA Capital is a leading independent European investment manager in the field of alternative investments with total assets under management of approximately €26 billion. It is engaged in the management and development of real estate, private equity and debt investment funds as well as multi-asset/multi-manager solutions for institutional investors. The real estate division manages an investment portfolio of approximately 12 billion euros with an international team of approximately 150 employees, which is represented locally in Germany, France, Italy, Poland and Spain.
In Germany, the branches in Frankfurt and Munich provide investment solutions in the areas of listed REITs and indirect real estate funds with a global or pan-European, but also national focus.