RLI Investors launches second logistics properties fund

RLI Investors has launched RLI Logistics Fund – Germany II, raising €100 million ($109 million) in a first close. RLI has started the investment phase.

The open-ended segregated real estate fund will invest in a diversified portfolio of logistics properties in Germany and targets an investment volume of €350 million to €400 million ($381 million to $436 million). It has a term of 10 years and a targeted annual distribution yield of 6.75 percent.

The investment profile of the RLI Logistics Fund – Germany II follows mainly the investment strategy of its predecessor, the RLI Logistics Fund – Germany I, which is fully invested.

Under its core-plus strategy, the fund will buy industrial, retail and e-commerce logistics properties in good and prime locations across Germany over the coming months. Investment candidates fall into two categories: high-quality properties with long-term leases and properties with expiring leases that are fully suitable to a broad range of occupiers; and older properties with high value potential. In addition, the fund can buy assets very early during the development stage via forward purchase and forward funding agreements.