Cording announces launch of new European Industrial Fund02 April 2019
Cording Real Estate Group, member of the Edmond de Rothschild Real Estate investment and asset management platform, today announces the launch of the Cording Euro Industrial Real Estate Fund that will invest in light-industrial and small logistics assets in the Eurozone.
The fund has a core plus risk profile and is aimed at institutional investors. The open-ended fund has been launched with equity commitments from Edmond de Rothschild and from a mandate managed by the multi-manager real estate team of Credit Suisse Asset Management who were actively involved in the structuring of the fund, optimising it for institutional investors.
The fund will invest in light industrial and small logistics properties, delivering sustainable income distributions over a long-term holding period. The team has secured a strong pipeline of investment opportunities and has already signed the acquisition of 7 assets. It aims to deliver to its investors an average net income return of over 6% per annum over a ten-year period.
Cording has a solid track record of buying, managing and selling in the industrial property sector in all its regions. Through its research-based approach and vertically-integrated platform, providing in-house development management, portfolio management, asset management, leasing management, Cording currently holds over €300 million of industrial properties under investment and asset management. It has achieved strong growth over the last five years, showing very good performance in all its industrial mandates.
Reiner Beckers, head of business development at Cording, said: “We believe this is a perfect time to launch an industrial fund. There is the opportunity to benefit from expected rental growth owing to the demand for space outstripping supply. This is particularly true of industrial sites in urban areas. We also aim to enhance income through our proven active asset management initiatives”.
The open-ended fund is domiciled in Luxembourg in the form of a FCP-RAIF. Pancura S.A. is the Alternative Investment Fund Manager and Aztec Group is the Central Administrator. Cording was advised by Clifford Chance in Luxembourg and Frankfurt. EY advised on the structuring of the fund.
Cording Euro Industrial Real Estate Fund is reserved exclusively for professional investors and might come with restrictions for certain persons and in certain countries.
The fund does not guarantee or protect the capital invested, so investors may not recover the full amount of their initial capital invested even if they retain their units for the recommended investment period. Any investment in Cording Euro Industrial Real Estate Fund involves exposure to certain risks and not limited to liquidity risk, concentration risk (Real Estate investments) and currency risk.
Any investment in Cording Euro Industrial Real Estate Fund may in any event only be made on the basis of documents and information that comply prevailing regulations.