Industrial real estate funds to double inflows
Global industrial real estate funds could double the amount they raise this year as investors target warehouse and logistics assets.
Research showed that specialist industrial property funds are projected to raise $6.4bn in 2019, up 120 per cent from inflows of $2.9bn last year driven by the yield available on logistics property.
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Demand has been boosted as established e-tailers and new entrants to the online retail market seek to expand their warehouse space, and investors believe the market will continue to grow, according to research from Cambridge Associates.
Less developed markets such as southern Europe are expected to see the greatest growth, the investment firm said.
Meanwhile, data from MSCI shows that yields on UK industrial property are 4.1 per cent compared to 3.9 per cent for office property.
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Indeesh Tangeraas, head of EMEA Real Assets at Cambridge Associates, said: “Inflows into industrial-focused real estate funds look set to grow strongly in 2019.
“The continued growth in online retail is driving demand for new logistics property, and there are still opportunities with attractive yields in the market”.
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