Swiss Life Asset Managers has further expanded its real assets coverage with the launch of a new strategy designed to capitalise in Europe’s industrials and logistics sectors.
The Luxembourg-domiciled fund, formally called Swiss Life Real Estate Funds (Lux) – European Industrial & Logistics, will focus on a diversified portfolio of high-quality assets in the region.
Swiss Life said the fund will primarily focus on German and French opportunities, albeit with the ability to cover fast-growing markets such as the UK, Switzerland and the Benelux region. Assets will be broadly split between industrial and logistic investments.
It said the mixed approach increases diversification but also allows for a wider array of rental income opportunities drawn from stronger investment opportunities.
Industrial real estate is mainly represented by mixed-use commercial properties whose tenants are typically from the small and medium-sized enterprises segment. Meanwhile, logistics properties generally feature large amounts of floorspace and occupy locations in European metropolitan regions offering particularly good access for warehousing, distribution and order-picking activities.
Discussing the timing of the launch, Swiss Life said it comes at a time when returns from many market segments are uncertain. However, industrial and logistic properties are consistently stable in comparison, it said.
It also ties into the mega-trends of growing e-commerce, urban logistics, Industry 4.0 and deglobalisation. Swiss Life aims to play this through a combination of small-scale industrial and large-scale logistics properties.
The launch comes hot on the heels of Swiss Life expanding its real assets operations with the launch of a private debt infrastructure team in Paris.