Fidelity International has launched a real estate logistics fund, investing in the across Western Europe to refurbish real estate with goals of net zero carbon emissions.
The fund, which is classified as SFDR Article 9, is called the Fidelity Real Estate Logistics Impact Climate Solutions fund (LOGICs).
LOGICs will invest solely in the logistics sector and acquire assets which are “capable of being operated at net zero carbon”, while installing solar panels to generate green energy. It is Fidelity’s second real estate climate impact fund.
Fidelity noted that 40% of carbon emissions come from real estate, and 85% of buildings in the EU are over 20 years old, which it called an “urgent and appealing investment opportunity”. According to the team’s research, ‘brown’ logistics buildings traded at 20 to 30% below valuations in 2022.
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Andrew McCaffery, co-chief investment officer at Fidelity International, said: “The LOGICs fund launch is a great example of partnering with our clients to jointly develop solutions to meet their evolving investment needs.
“We are pleased to see strong and growing client interest for our climate impact strategies within real estate, supporting the energy transition in the sector through accelerating purchased assets’ pathway to net zero while offering compelling investment returns to our clients. Following a strong first close, investors will have the opportunity to invest in the fund’s second close towards the end of the year.”
The fund raised €200m in its first close, bolstered by Australian superannuation fund Rest Super, who committed €80m at first close and has agreed to an additional €120m.
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Andrew Lill, Rest’s chief investment officer, said: “Rest is pleased to join Fidelity to launch the LOGICs fund as its cornerstone investor. We believe its focus on climate impact offers a fantastic opportunity to benefit Rest’s approximately two million members, including the more than a million who are younger than 30 and will retire into a post-2050 net-zero world.
“With logistics properties trading at attractive rates and demand for energy efficient facilities growing, we believe the LOGICs fund will drive rental yields and property values that should translate into strong financial returns while helping to speed up the path to a carbon neutral economy.”
