Fidelity snaps up first properties for Rest-backed climate impact fund

Fidelity has completed the inaugural purchase of key growth assets for its Real Estate Logistics Impact Climate Solutions (LOGICs) Fund, with the acquisitions expected to deliver “outsized returns for modest risk over the next few years” for investors.

The three newly acquired assets, based in key logistics hubs within the Netherlands (Tilburg & Roermond) and Spain (Ontigola) and purchased for an undisclosed sum, will be refurbished as part of the LOGICs fund’s overarching goal of developing “high-quality” carbon neutral logistics properties.

The acquisitions, consisting of an industrial estate and logistics hubs, total 118,000 square metres of gross leasable area (GLA).

Fidelity has deemed the newly acquired assets as “highly suitable” for ‘climate impact’ renovations – touted by the investment firm as a “brown-to-green approach” aimed at bringing buildings up to best-in-class sustainability standards whilst at the same time achieving net zero carbon (NZC) operational output.

“The strategy targets value-add returns and will focus refurbishments on energy efficiency improvements, with the aim of delivering best-in-class assets that are in demand from occupiers, Fidelity explains.

“In addition, through the installation of solar panels, occupiers have the opportunity to generate and deliver their own source of green energy.”

The LOGICs fund is Fidelity’s second climate impact fund and invests solely in the logistics sector across core Western European markets.

Fidelity announced last April that it had completed a €200 million first close for LOGICs. A second close is currently underway.

Rest Super is among the cornerstone investors in LOGICs, committing €80 million (AU$133 million) to the fund at first close, with an agreement to commit up to a further €120 million (AU$199 million) to the fund over the subsequent closes.

Neil Cable, Fidelity International’s head of European real estate investments, said the newly acquired properties were “purchased at attractive entry points with solid market fundamentals”.

“The Netherlands and Spain are two core focus areas for us, but we are also exploring further opportunities across Western Europe including the UK, Germany, France and Belgium, with appealing prospects identified in our target markets.”

The transactions were brokered by CBRE, DLA Piper, and Arcadis.