IPUT Real Estate (“IPUT’), Dublin’s leading property investment company, has launched a new logistics sub-fund, the “IPUT Nexus Logistics Fund” raising €115 million in new capital to develop the first 1.5 million sq. ft. of Nexus Logistics Park (“Nexus”). The IPUT Nexus Logistics Fund will operate as a sub-fund within IPUT Real Estate and is classified as an SFDR Article 9 fund, ranking it among the most sustainable real estate funds in Europe.
IPUT has raised €115 million in new capital from two new investors, the Ireland Strategic Investment Fund (ISIF), and a European institutional investor via CBRE IM’s Indirect Strategies, to develop the first phase of Nexus. The remaining €115 million is being invested by IPUT through a combination of capital and its zoned logistics landbank.
IPUT intends to capitalise on the absence of meaningful large-scale institutional investment in Irish logistics parks, and the pent-up demand from major global and domestic occupiers looking to establish modern distribution hubs, particularly in the Dublin region.
Research undertaken by IPUT indicates that there is a clear shortage of modern building stock capable of accommodating the ongoing structural shift in global trade patterns to and from Ireland resultant of Brexit and the increased e-commerce penetration in the economy. Over the last decade, we have seen a 100% increase in freight volumes direct from Europe and according to CBRE, there is over 5.5 million sq. ft. of active demand for logistics space. With a vacancy rate close to 2% in Dublin, there is a clear opportunity for the provision of sustainable logistics solutions.
Niall Gaffney, Chief Executive of IPUT Real Estate, commented:
Nexus offers a compelling investment opportunity given the significant and sustained demand for logistics in Ireland, particularly in Dublin. The factors driving demand include the rapid growth of e-commerce, the impacts that COVID-19 and Brexit have had on trade patterns, a rapidly changing shift in storage and distribution channels, and the resultant increase in demand for sustainable buildings.
We continue to create leading workplaces in Ireland and will bring our track record in sustainability, occupier amenities, and people-led design to the development of Nexus which, will be classified as an Article 9 Fund, and will aim to be among the greenest real estate funds in Europe. Nexus will set a new benchmark for innovative logistics design and is strategically located near the Dublin Port, Dublin Airport, and motorway network.
Having our strategy endorsed with the support of the Ireland Strategic Investment Fund as a new investor in IPUT and being able to grow our relationship with a leading global investor of the calibre of CBRE Investment Management, is testament to our track record and team.
Sarah Hickey, Senior Investment Director at ISIF, said:
ISIF’s investment in Nexus will catalyse the development of new commercial infrastructure necessary to support increased levels of trade and economic growth. This investment is an example of how ISIF’s impact investment approach can support sustainable development and placemaking to deliver modern new workplaces alongside community spaces in a fully integrated way.
Robert Muilwijk, Senior Director, at CBRE IM Indirect Strategies, said:
This investment underscores our strong conviction in the industrial sector and our commitment to sustainable development. The Nexus Logistics Park represents a significant opportunity to meet the growing demand for modern, sustainable logistics solutions in Ireland. We are confident that this collaboration will deliver substantial value for our client while also contributing to a more sustainable supply chain network in Dublin. We look forward to a successful partnership with IPUT and ISIF and the continued growth of this innovative project.