Panattoni diversifies its business by launching a European logistics fund

Panattoni is launching a pan-European fund that will aim to invest in modern, sustainable, and profitable logistics real estate. 

Panattoni Income Fund is an open-ended, Luxembourg-registered "evergreen" fund that plans to raise 300 million euros in capital by 2026 and acquire assets worth 600 million euros developed and managed by Panattoni. The owners of Panattoni and the management team will be co-investors.

The fund's objectives are to generate stable income and capital appreciation for investors. It will acquire stabilized assets and enter into forward-purchase pre-let agreements for investments exclusively meeting the highest sustainability standards in countries where Panattoni operates, including Central and Eastern Europe (particularly in Poland), the UK, Italy, Spain, Germany, Austria, the Netherlands, and Scandinavia. The fund begins its operations by acquiring stabilized assets managed by Panattoni in Poland.

The fund's advisory team is based in Poland. The Managing Director is Krzysztof Dudek, who will be responsible for managing operations, investment activities, the portfolio, and assets, as well as fundraising and capital flows. Before joining Panattoni, he served as Head of Real Estate Investment Management at TFI PZU – the investment arm of Grupa PZU, the largest financial and insurance company in Central and Eastern Europe, managing a commercial real estate portfolio worth nearly 1 billion euros.

Przemysław Konieczka serves as the fund's Executive Director and oversees strategic investment initiatives and portfolio management. Before joining Panattoni, he was a fund manager and Investment Director at TFI PZU.

"This is a convenient time to create the first Panattoni income fund. The market correction after the COVID pandemic has made returns on industrial and logistics real estate more attractive. Significant capital has been waiting for prices to stabilize and for more favorable financing conditions," says Krzysztof Dudek, Managing Director of Panattoni Income Fund, and adds: "The supply and demand dynamics in the sector remain very favorable for investors. The potential for rent growth is supported by limited supply resulting from land shortages, regulatory barriers, and rising construction costs, combined with strong, sustained demand for logistics space, which is driven by the growth of e-commerce and new manufacturing investments."

"Investing in industrial and logistics real estate offers an attractive opportunity and long-term returns, supported by structural growth factors. The market is currently experiencing a supply shortage and increasing pressure for ESG-compliant assets, which gives the fund a competitive advantage through access to prestigious projects," explains Daniel Raemy, member of the Panattoni Income Fund advisory board.

The creation of Panattoni Income Fund is a continuation of the diversification of Panattoni's business, which is the largest provider of logistics and industrial investments in Europe. In April 2022, Panattoni launched the Newport Logistics Fund, which finances selected Panattoni projects, and last year, logistics real estate industry veteran Nick Preston joined the company, taking the position of Head of the newly created Panattoni Investment Management, providing the company with additional sources of capital.