Backed by one of Australia’s largest super funds, Fidelity is aiming to support an accelerated energy transition in the real estate sector.
Fidelity International has announced the inaugural purchase of three assets in the Fidelity Real Estate Logistics Impact Climate Solutions Fund (LOGICs).
In April, $90 billion super fund Rest confirmed that it had signed on as a cornerstone investor for the LOGICs fund, committing €80 million ($133 million) of what would ultimately be a €200 million raise during its first close.
According to Fidelity, Rest has agreed to commit up to a further €120 million to the fund over the subsequent closes.
As the firm’s second climate impact fund, LOGIC invests solely in the logistics sector across core western European markets and follows a “brown-to-green” approach of acquiring existing assets with the intention of refurbishing and repositioning to deliver assets that are capable of being operated at net zero carbon (NZC).
“Demand for NZC properties from occupiers in the prime locations identified is growing rapidly while supply of quality logistics assets is constrained, leading to strong rental growth for well-located, green warehouses,” the investment manager said.
“The strategy targets value-add returns and will focus refurbishments on energy efficiency improvements, with the aim of delivering best-in-class assets that are in demand from occupiers. In addition, through the installation of solar panels, occupiers have the opportunity to generate and deliver their own source of green energy.”
Fidelity added that the three assets, located in the Netherlands and Spain, are highly suitable for an “impact type of renovation”, which will bring the buildings to NZC capability.
The first asset is at Industrial Park Katsbogten, five minutes from Tilburg centre, while the second, the industrial estate “Roerstreek”, is situated on the south side of the city in Roermond.
These two assets in the Netherlands, according to Fidelity, are part of a larger European portfolio currently being acquired off-market by the LOGICs fund.
Meanwhile, the third asset is a logistics park based in Ontigola, Spain, acquired from global diversified real estate investment manager Barings on behalf of a core real estate strategy.
“Following the successful first close for the LOGICS fund which raised €200 million in capital commitments earlier this year, and with plans for a second close well underway, we are excited by the strong pipeline of attractively priced assets in the market at the moment, with all three newly acquired assets purchased at attractive entry points with solid market fundamentals,” Neil Cable, Fidelity’s head of European real estate investments, said.
“The Netherlands and Spain are two core focus areas for us, but we are also exploring further opportunities across western Europe including the UK, Germany, France and Belgium, with appealing prospects identified in our target markets.”
