Focus on small urban flexible spaces and infill centres
The focus is on mature European economies and real estate markets in Germany, France, Spain/Portugal, the Netherlands, Belgium, Italy, Poland and Austria.
The positive overall economic development and the rapidly growing e-commerce sector require not only urban innovative logistics solutions, but also the corresponding infrastructure.
Destinations are metropolitan regions, i.e. top 3 cities in Germany (Berlin, Hamburg, Munich), Paris, Amsterdam, Brussels, Milan and Rome, Madrid and Barcelona, Warsaw and Vienna pp.
Micro-locations concentrated in a corridor of about 1 km north and south of the ring roads around the city centres, but still central inner-city locations.
The focus is on small urban flex spaces, i.e. smaller properties between 1,000 and <8,000 sqm that are let and offer a stable cash flow.
The flexible spaces offer e.g. retailers the possibility to be transformed into urban micro-logistics, i.e. floor plans without pillars, infrastructure for delivery pp.
”UrbanMile focuses on the dynamics of ongoing urbanisation. The speed of market introduction is as varied as the users themselves.
Dr. Wolfgang SpeckhahnManaging Director
The global trends
of urban micro-logistics
Re & Nearshoring
The erosion of global supply chains as a result of the crisis triggered by the Covid 19 pandemic will push European companies to move outsourced production and supply closer to end-user markets.
Urban and real last-mile delivery is becoming a decisive competitive factor for e-commerce companies (e.g. Amazon, Zalando pp.) and Q-commerce companies (e.g. Gorillas, Flink pp.). Urban planning competences with the integration of logistics areas in mixed-use neighbourhoods are gaining importance.
Decarbonisation and the goal of increasing the quality of life in cities are already limiting access to storage capacity and will increase the restriction to e-mobility transport solutions in the future.
In the course of the fourth industrial revolution (Internet of Things), the development will move away from speculative mass production towards small-scale, demand-driven production that seeks proximity to the customer.
Why invest in UrbanMile?
+++ Smart flexible industrial and commercial real estate for micro-logistics +++ Small demand-driven light manufacturing and commercial facilities +++ Light industrial, urban logistics, B2C deliveries, mixed use, storage, etc.
Markets & Trends
+++ Big city markets in France, Germany, Italy, Poland, Spain, Austria and BeNeLux +++ Access to urban mixed-use commercial space with a spread of approx. 200bps +++ Benefit from the growth of e- and Q-commerce on the last mile +++ Access-restricted city centres due to climate protection, increase in quality of life
+++ Diversified pan-European portfolio of markets and assets | tenants +++ Core+ and value-add risk profile with focus on attractive yield +++ Target volume portfolio of more than €700 million in target markets.
Stable cash flow
+++ Cash-on-cash return >5.6% with a low leverage of <60% +++ IRR of the portfolio of 8.31% based on a 10-year holding period, compounded annually and after all fees, before taxes +++ Acquisition of predominantly stabilised properties with current cash flow
+++ Luxembourg closed-end SICAV-RAIF +++ Fund management by Pancura S.A. advised by DeA Capital Real Estate Germany +++ Operational management by DeA Capital RE Group European platforms and teams
+++ International and sectoral track record +++ Network of pan-European platforms within the group +++ Local teams with local market networks and access +++ In-depth market knowledge
DeA Capital Real Estate Germany GmbH is authorised in the context of investment brokerage of and investment advice in financial instruments pursuant to § 2 para. 2 No. 3 and No. 4 of the Securities Institutions Act (“WpIG”) as a contractually bound intermediary pursuant to § 3 para. 2 WpIG acts exclusively for the account and under the liability of AHP Capital Management GmbH, Weißfrauenstraße 12-16, 60311 Frankfurt am Main, (“AHP”). Further information on the investment services offered can be found here.