East Capital Group partners with VGP on pan-European logistics investment
For almost three decades, East Capital Group has broken new ground by identifying markets and investment themes where structural growth meets active management. The Group is now taking another step forward through a pan-European strategic partnership in logistics real estate with VGP, a leading European developer and owner of logistics and industrial properties.
East Capital Group, through the support of East Capital Real Estate, is preparing the launch of the European Logistics Fund, a pan-European logistics fund established in a partnership with VGP.
The fund will have a clear Core+ strategy and is intended to invest in newly built, income-generating logistics properties in leading European logistics hubs. The focus is on modern properties with strong ESG characteristics, established tenants and inflation-indexed rental income that generate stable cash flows. The ambition is to build a diversified property portfolio of EUR 1.5 - 2 billion over time, with a gross target return of 12-14% at property level.
The initiative comes at a time when logistics and light industrial real estate continue to benefit from strong structural tailwinds. The reconfiguration of European supply chains, growing demand for nearshoring and advanced manufacturing, and increasing requirements for resilient production and distribution networks are driving sustained demand for modern, high-quality logistics and industrial properties across Europe.
Peter Elam Håkansson, Founder and Group Chief Investment Officer (CIO), East Capital Group, commented that “East Capital Group has always been about identifying opportunities where we see structural growth and where our active management model can make a real difference. East Capital Group builds on that experience and applies it to areas where we see potential to generate strong risk-adjusted returns for our clients. European Logistics Fund is a clear expression of this and the fact that we are doing this together with a market-leading partner such as VGP further strengthens both the quality and the long-term potential of the initiative.”
Through the partnership, the fund will gain access to VGP’s extensive European development pipeline and the opportunity to invest in properties. This provides access to attractive investment opportunities and institutional-quality assets from the outset.
Albin Rosengren, Partner and Head of East Capital Real Estate, said that “This is a transformative step for East Capital Real Estate. Through the partnership with VGP, we gain exclusive access to an extensive pipeline of modern properties in leading European logistics hubs. This allows us to invest with the right quality, the right tenants and stable cash flows from the outset. Together we are creating a scalable, institutional platform with a clear ESG profile and attractive return potential.”
European Logistics Fund is in the pre-marketing phase and discussions with potential investors are ongoing. The fund represents a natural next step in the development of East Capital Real Estate as a pan-European real assets platform.
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Important information regarding European Logistics Fund:
The European Logistics Fund is currently under preparation and is intended to be structured as a Luxembourg-based reserved alternative investment fund (RAIF) managed by an authorised AIFM in accordance with AIFMD. Pre-marketing of the fund is carried out by East Capital Asset Management (ECAM), which is the entity within East Capital Group responsible for this activity.
The fund has not yet been registered for marketing in any jurisdiction. This press release does not constitute an offer or a solicitation to invest in the fund. Any investment will, if and when the fund is launched, only be possible on the basis of the final fund documentation and in accordance with applicable regulations.
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