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Top take-aways: Programm Logic 2014

Thorsten Kiel

Thorsten Kiel (Fund Manager, German Logistics Fund) provides his top take-aways from Programm Logic 2014, a German Logistics event hosted by Crem-Consult and Palmira.

This was the fourth Logic event, with many new attendees reflecting a market where there is keener pricing and new developers.

Transaction volumes have risen but this is mainly due to large development companies developing and selling assets to their own internal funds, resulting in the rest of the market not benefiting as much from the increased activity.

Developers have started land banking again as they expect land to become more expensive and zoning to become more restrictive. Brownfield developments and new logistics concepts, such as distribution floors in mixed use inner city blocks, were discussed as trends to cope with future demand.

Investment firms managing foreign capital confirmed that foreign investors from North America and Asia were accustomed to a 100bp yield-spread between logistics and retail, as well as total returns of less than 5%. They expect pricing to continue to increase and market values to remain high in the long run, as the German market is now an institutional market and foreign investors are less likely to disappear like they did in the last global financial crisis.

We also proudly presented the strong track record of our German Logistics Fund which is delivering returns of over 9% pa; competitors have bought much less to the market in the past two years.

 

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Thorsten Kiel

Thorsten Kiel

Head of Logistics, Europe

Thorsten's biography

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