Palmira Capital Partners' German Logistics Impact Fund (“GLIF”) is the first logistics property fund to be granted marketing authorisation by the German Federal Financial Supervisory Authority (BaFin) for a fund that complies with the requirements in Article 9 of the EU Disclosure Regulations.
So-called impact funds must adopt strict criteria to demonstrate that they are investing sustainably and are therefore making an active contribution to a more life-affirming environment.
Very few fund products meet these strict criteria. The GLIF is making a significant contribution to mitigating climate change.
The GLIF will invest exclusively in existing German logistics property. During the acquisition process of each property, an individual modernisation concept will be compiled. Implementation of these works will reduce the primary building energy demand of the properties by at least 30% and decarbonise them within three years. This will comply with the strict requirements of the Disclosure Regulation and EU taxonomy for sustainable economic activities.
Decarbonisation, transparency and certification
Silvio Müller, fund manager of the GLIF, comments. "As one of the pioneers in the industry, at an early stage we recognised the importance of structuring logistics properties on a sustainable - and hence future-proof - basis. Our team has worked for over a year on the fund concept, which we also call ‘Manage-to-ESG-Core’. We are very proud to be the first German company to bring a genuine impact fund with logistics real estate to the market for investors".
"The individual modernisation concepts include works for energy optimisation, energy generation and storage, and CO2 mitigation. For this, Palmira employs innovative solutions that are tailored to the type of building, use and location. Within three years, the CO2 emissions from the buildings concerned will be reduced to net zero by the optimisations implemented in their operation," adds Christean Schmidt, Head of Sustainability at Palmira.
The entire process is monitored by a leading ESG software platform. From the energy data obtained, Palmira compiles reports that transparently demonstrate the progress of decarbonisation. Taxonomy-compliant implementation of the works is further certified by the DGNB German Sustainable Building Council. The German Logistics Impact Fund in its entirety is transparently assessed via GRESB, the internationally recognised and independent scoring system.
The GLIF is an open-ended special AIF. IntReal International Real Estate Kapitalverwaltungsgesellschaft mbH is the responsible KVG (capital management company) and BNP Paribas Securities Services acts as depositary.
The German Logistics Impact Fund is planning a total fund volume of around EUR 500 million, including c. EUR 300 million of equity. Investments will be made in German logistics properties in the Core+ and Core risk classes. The target distribution yield over the ten-year lifetime of the fund life is 4% p.a. The first closing is scheduled for Q2 2022. Investors may participate with a minimum subscription of EUR 10 million.
Photo: Christean Schmidt