Investors continue to back core European logistics funds, attracted by their income, with Goodman and Prologis both raising fresh equity. Goodman raised €550m of new equity for its European Logistics Fund (GELF) this month. Following the issuance in March of the fund’s first, €500m Eurobond, GELF now has more than €800m of capital to invest.
Meanwhile, Prologis European Properties Fund II recently re-opened to new investors for the first time since its 2007 launch, with New Jersey Division of Investment making a $185m commitment, representing 7% of the fund.
Timothy Walsh, director of the US pension plan, said New Jersey was attracted by the yield of more than 7%, combined with the prospect of growth in the value of its 200-plus properties. Greg Goodman said interest in GELF had been “overwhelming” with investors scaled back after the fund received demand for €900m.
Existing investors contributed most of the fresh equity raised. Goodman sold down its stake from 28.4% to 20%. GELF’s last equity raising was in December 2011. Its large investors include APG, PGGM and Aviva Investors. The €1.9bn fund was launched in late 2006 and has 94 assets in 11 countries.