Panattoni diversifies with launch of €600 million European logistics income fund

Panattoni today announces the launch of a pan-European fund that will invest in modern, sustainable, income-producing logistics properties.

The Panattoni Income Fund is domiciled in Luxembourg with an open-ended, evergreen structure. It is aiming to raise €300 million of equity by 2026, and acquire €600 million of assets, developed and managed by Panattoni. Panattoni’s owners and management team will be co-investing.

The fund aims to generate sustainable income with capital appreciation for its investors. It will acquire stabilised assets and forward-purchase pre-let developments, all with the highest sustainability ratings, in countries where Panattoni operates, including Central and Eastern Europe, (particularly Poland), UK, Italy, Spain, Germany, Austria, the Netherlands and Scandinavia. It is being seeded with stabilised Panattoni-managed assets in Poland.

The fund’s advisory team is based in Poland. Its managing director is Krzysztof Dudek, who will manage the operations, investment activity, portfolio and asset management, as well as fundraising and capital flows. Prior to joining Panattoni, Krzysztof was head of real estate investment management at TFI PZU, the investment arm of the PZU Group, the largest financial and insurance company in Central and Eastern Europe with commercial real estate portfolio close to EUR 1 bn.

Przemyslaw Konieczka is executive director at the fund and oversees strategic investment initiatives and portfolio management. Prior to joining Panattoni, Przemyslaw was fund manager and investment director at TFI PZU.

Krzysztof Dudek, Managing Director at Panattoni Income Fund, said: “This is an opportune time to be creating Panattoni’s first income fund. The post-Covid market correction has resulted in yields for industrial and logistics properties becoming more attractive. There has been a significant amount of capital waiting on the sidelines for repricing to settle and for more favourable financing conditions.

“The demand-supply dynamics in the sector continue to be very positive for investors. The potential for rental growth is underpinned by limited supply, stemming from land scarcity, regulatory barriers and rising construction costs, coupled with strong, sustained demand for logistics space, driven by e-commerce growth and new manufacturing”.

Daniel Raemy, Member of the Advisory Board at Panattoni Income Fund said: “Investing in industrial and logistics properties offers a compelling opportunity and attractive long-term returns, bolstered by structural drivers. The market is currently experiencing a shortage of supply, coupled with a growing emphasis on ESG-compliant assets, which gives the fund a competitive edge through access to premium projects”.

The creation of the Panattoni Income Fund continues the diversification of Panattoni, which is the largest provider of logistics and industrial development and investment opportunities across Europe. In April 2022, Panattoni launched the Newport Logistics Fund, which finances selected Panattoni developments, and, last year, logistics real estate veteran Nick Preston was appointed head of the newly created Panattoni Investment Management, which provides Panattoni with additional pools of capital.