Publications

Investment case: Why Asian investors should consider European core logistics assets
- January 1, 2019: Vol. 11, Number 1

To read this full article you need to be subscribed to Institutional Real Estate Asia Pacific

Investment case: Why Asian investors should consider European core logistics assets

by Maurizio Grilli

The logistics property sector has proved to be a solid asset class, providing an attractive return profile over time. Investment in logistics has increased considerably, as this property asset class has gained favour with investors, leading to more transparency and liquidity. Investment volume in European logistics was approximately €38 billion (US$43 billion) in 2017, a record high. Moreover, while investment in this sector represented about 8 percent of total commercial investment in 2012, this share mounted to 14 percent in 2017.

Asian investors should be attracted to European logistics because the sector offers relatively-interesting yields and provides steady rental income, while also having strong long-run fundamentals.

Logistics has been one of the best-performing property sectors, both in the medium and long term. Since the start of the pan-European MSCI series in 2001, total returns for the logistics sector have equalled 8.5 percent per year (see “Pan-Euro

Forgot your username or password?