Aberdeen Standard European Logistics Income (ASLI) has assembled a property portfolio that is primed to cash in on the fundamental shift in consumer spending to online retail. The European logistics market is set to follow in the footsteps of the UK market, which has witnessed a surge in demand from occupiers wrestling for more efficient supply chains as online sales grow.
Supply of logistics property is already at historic lows across Europe and, coupled with strong demand, significant rental growth is expected to come through. ASLI has focused its attention on established logistics locations and quality real estate assets to ensure durability of income.
After a capital raising in July 2019, ASLI is seeking to further expand its portfolio, both in the countries it currently operates in and others that share similar supply/demand dynamics. It is also looking at the ‘last mile’ urban logistics sub-sector, strategically located parcel delivery hubs on the outskirts of major towns and cities, which is predicted to boom. Subject to the satisfactory deployment of the raised proceeds, the company is also considering further fundraising to support the expansion.
ASLI invests in a diversified portfolio of ‘big box’ logistics and ‘last mile’ urban warehouses in Europe with the aim of providing its shareholders with a regular and attractive level of income return. It is targeting a 5% yield in 2019 together with the potential for long-term income and capital growth (target total return of 7.5% a year in euros).