Target Information

Newport Logistics Fund has divested its inaugural development project from its first fund, achieving an impressive internal rate of return of 20.3%. This development, located a mere 30 minutes from the significant urban centers of Amsterdam and Utrecht, has been completed and sold to a global company, which intends to utilize the facility for the production and distribution of goods.

The facility encompasses a total area of 23,420 square meters, comprising 19,666 square meters of industrial space, 2,158 square meters of office space, and 1,596 square meters of mezzanine space, along with 258 parking spaces. Designed to meet the BREEAM 'Very Good' sustainability standards, this development showcases Newport's commitment to creating environmentally responsible and future-proof assets.

Industry Overview in the Netherlands

The logistics sector in the Netherlands is a vital component of the national economy, benefiting from the country's strategic geographic location at the heart of Europe. With extensive transport infrastructure, including major ports and airports, the Netherlands serves as a key logistics hub for the European market. The industry has seen robust growth due to the increasing demand for efficient supply chain solutions and e-commerce operations.

In recent years, the Dutch logistics market has been characterized by the rise of modern warehousing and distribution centers that prioritize sustainability and technological innovation. Companies are increasingly seeking facilities that are equipped to handle the complexities of today's logistics requirements, demonstrating a trend toward minimizing environmental impact while maximizing operational efficiency.

Moreover, the government's investment in transportation infrastructure and technology has further enhanced the competitiveness of the logistics sector. With a focus on sustainable practices and smart logistics solutions, the industry is well-positioned to adapt to the evolving economic landscape while maintaining its growth trajectory.

Rationale Behind the Deal

This transaction aligns with Newport Logistics Fund I’s investment strategy to identify high-quality logistics facilities in prime European markets. The property’s advantageous location, providing access to a population of 12 million within an hour's drive, underscores the fund's focus on investing in areas marked by strong growth potential and connectivity.

Szymon Ostrowski, Managing Director of Newport Logistics Fund, noted that the project's successful development reflects not only a strategic investment in a growing market but also emphasizes their commitment to sustainability and high-standard design. The collaboration with the developer, Panattoni, played a crucial role in realizing this standout project.

Investor Information

Newport Logistics Fund is a Luxembourg-based investment firm that primarily focuses on the full development cycle of modern logistics facilities across Europe. Its portfolio includes strategic investments totaling €100 million, with projects in London, Amsterdam, and Lodz. The fund garners capital from professional investors, primarily high-net-worth individuals and family offices located in the EU, Switzerland, the UK, the US, and the Middle East.

The firm aspires to generate an annual return of 15% for its investors and has established a reputation for delivering extraordinary returns through well-structured developments and strategic market placements. As part of the Panattoni group, Newport leverages its extensive experience and industry connections to navigate the logistics real estate market effectively.

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The successful sale of this industrial facility reflects a strategic investment by Newport Logistics Fund, reinforcing the appeal of logistics assets in high-demand urban areas. Given the continuous growth of e-commerce and the increasing need for efficient logistics solutions, this project exemplifies a sound investment opportunity in a robust market.

Moreover, the focus on sustainability through BREEAM certification enhances its attractiveness, as modern investors increasingly prioritize environmentally responsible properties. This trend is likely to persist, signaling strong long-term demand for similar assets.

Overall, the deal is indicative of a broader trend within the logistics sector, where demand continues to outstrip supply in key European locations. With the ability of Newport to achieve a return above the anticipated 15%, the investment stands as a compelling case for future opportunities in the logistics space.

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