Fiera Real Estate Targets £420M Of Industrial And Logistics, Set To Launch Second Fund
Fiera Real Estate UK has completed the final close of its Fiera Real Estate Logistics Development Fund UK, giving it investment potential of up to £420M, with 50% of that coming from debt, the company said.
FRELD’s final capital raise has completed subscriptions to its development-led, value-add strategy, which made its debut acquisition in 2022. Its investor base includes a mix of local government pension schemes and pension funds from the U.S., Europe and Asia, alongside co-investment.
Following the close of FRELD, Fiera said it will start fundraising for its second fund, FRELDII, imminently. It will replicate the strategy adopted in the first fund and target institutional investors globally.
FRELD is 85% deployed after acquiring 10 assets in logistics hubs such as Heathrow, Reading, Cambridge, Hayes and Edmonton. The fund is looking for additional opportunities for small to mid-box logistics developments of up to 250K SF.
Fiera Real Estate UK said it had taken advantage of “softer pricing conditions” through its operating partner model whereby it has a minority stake in nine regional property companies across the UK. Together with its operating partner network, Fiera has developed more than 11M SF of logistics assets in the last five years.
Focused on ground-up development, all the developments have targeted net-zero construction, BREEAM Outstanding certifications, energy performance certificate A ratings, and more than 10% biodiversity net gain.
UK logistics investment activity continued to recover during 2024, with “momentum” returning to the market in the second half of the year, according to Cushman & Wakefield. Total investment volume for the year reached £8.8B, 40% up on 2023 and only 1% below the five-year average.
“We believe our strategy puts us in an excellent position to capture this vintage in UK logistics, which is characterised by strong dislocation from a pricing and supply perspective, as well as surging investor and occupier demand,” Fiera Head of European Real Estate Charles Allen said in a statement.
“Our strict focus on Grade A development in supply-constrained urban conurbations also offers upside through rental growth prospects and comes at a time when early signs of recovery are emerging in the occupational market.”
