East Capital Group and East Capital Real Estate are preparing to launch the European Logistics Fund, a pan-European logistics fund developed in partnership with VGP.
The fund will pursue a clearly defined Core+ investment strategy, focusing on investments in newly constructed, income-generating logistics properties in leading European logistics hubs. The European Logistics Fund will prioritize modern properties with a strong ESG profile, reliable tenants, and rental income linked to inflation, providing stable cash flow. The long-term goal is to build a diversified real estate portfolio valued between €1.5 billion and €2 billion, targeting a gross yield of 12-14% at the property level.
This initiative comes as the logistics and light industrial real estate segment benefits from strong structural tailwinds. The reshaping of European supply chains, increasing demand for bringing manufacturing closer to conclude consumers, and the growing need for resilient production and distribution networks are driving steady demand for modern, high-quality logistics and industrial properties across Europe.
Peter Elam Håkansson, founder and Chief Investment Officer of East Capital Group, emphasized, “East Capital Group has always focused on identifying opportunities in areas where structural growth is evident and where our active management model can create significant added value. This experience allows us to expand into segments where we see the potential to deliver strong risk-adjusted returns to our clients. The European Logistics Fund is a clear demonstration of this approach, and the partnership with a market leader like VGP further strengthens the quality and long-term potential of the initiative.”
The partnership will provide the fund with access to VGP’s extensive development project pipeline in Europe and investment opportunities in properties. This access immediately opens opportunities to attractive investment prospects and institutional-quality assets.
Albin Rosengren, Partner and Head of East Capital Real Estate, noted, “What we have is a transformative step for East Capital Real Estate. The collaboration with VGP provides us with exclusive access to a broad portfolio of modern properties in leading European logistics centers. This allows us to invest from the outset in high-quality assets with appropriate tenants and stable cash flow. Together, we are building a scalable institutional platform with a clear ESG profile and attractive yield potential.”
The European Logistics Fund is currently in the pre-marketing phase, with discussions ongoing with potential investors. The fund represents a logical next step in East Capital Real Estate’s development as a pan-European real estate asset platform.
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