Delin Capital Kicks Off the New Year with €40 Million Off-market  Netherlands Purchase

Delin Capital Asset Management, (‘DCAM’ or the ‘Company’), a Jersey registered real estate investment advisor and asset manager focused on investments in logistics assets in the UK, the Netherlands and Belgium, has acquired a 44,142 m² modern, high specification distribution warehouse in Waddinxveen, the Netherlands, through a €40 million sale and leaseback transaction from Van Uden Group, a privately owned European logistics operator. The asset was acquired for DCAM’s Capital Preservation Portfolio I, (‘CPP I’ or the ‘Fund’), the Company’s inaugural core plus logistics fund. It is the seventh Dutch asset acquired by the Fund and takes CPP I’s total investment to over €400 million.

The 44,142 m² freehold distribution warehouse was built in 2011 and it is situated in the established strategic location of Distripark A12, in the municipality of Waddinxveen, well positioned to benefit from neighbouring Rotterdam, Europe’s largest port. Van Uden Group has taken a new ten year lease, without breaks, on the warehouse and will use it to satisfy multiple food and beverage contracts for its clients, which include Nestle.

Christian Jamison, Chief Executive Officer of DCAM commented:

“Once again, we are pleased to have been able to capitalise on our reputation as being a strong transaction partner to source another deal off-market. This is a high quality, well located, modern logistics asset, which will generate attractive income returns for our investors. Furthermore, having acquired the asset using our existing cash resources, we can leverage the investment later in the year, with a view to making further acquisitions in the European logistics market when we identify suitable opportunities.”

Delin Capital was advised by Jones Lang Lasalle and CMS Derks Star Busmann.


Retail revolution sparks change in logistics sites

Kate Allen, Financial Times

Delivery firms may not be expected to match Santa Claus’s dash around the world in a single night but many are coming under pressure to meet tighter deadlines.

The move to same-day and next-day deliveries is forcing retailers and distributors to make radical changes to their property portfolios. Logistics companies have previously required fairly humdrum industrial property — and their breeze-block sheds have struggled to compete with glossy offices and bustling shopping malls for investors’ attention. But getting things to where they need to be is no longer such a simple matter.

The problems faced by delivery network Yodel and retailer Tesco earlier this month in coping with a deluge of parcels highlighted the practical challenge that retailers and distributors face.

Before the advent of E-commerce, distribution activity was largely focused on a handful of huge hubs such as the UK’s golden triangle in the Midlands and the Benelux corridor stretching inland from Europe’s biggest ports, Rotterdam and Antwerp.

Those hubs are still in demand but a new array of smaller sites of 70,000-100,000 sq ft (one or two football pitches) are also developing around major population centres in order to fulfil faster delivery times and supply local convenience chains.

Gareth Osborn, logistics director at listed industrial property specialist Segro, says: “Retailers are taking industrial units around the main conurbations, to break up big lorry loads into lots of small deliveries in a fleet of small vans. That requires a different type of building [to traditional big-box facilities].”

About 35 per cent of Segro’s tenants are parcel delivery companies, third-party distributors and retailers, up from 10 per cent a decade ago.

Access to land is the biggest problem for these new facilities, Mr Osborn says, with housing developers in particular proving tough competition.

A shortage of suitable space means that investors expect rents to rise in the next couple of years. “In the short term there’s a bit of a capacity problem, with parcel numbers going through the roof,” says Christian Jamison, chief executive of Capital, which launched a £400m pan-European logistics fund in 2012.

As a result, investors have been piling into this asset class this year. European logistics property investment volumes jumped by a third to top €20bn in the 12 months to the end of September, according to figures from Standard Life Investments.

One reason for this demand is the high returns. European industrial property — including logistics — produced an 8 per cent total return in that period, compared with 5.7 per cent from offices and 5.6 per cent from retail, according to data company IPD.

“What resonates with investors about logistics is that it’s a very defensive asset class to invest in,” says Mr Jamison. “Even in the absence of economic growth you will get increasing demand for logistics because E-commerce is taking up more of the retail market.”

Demands are also changing for the bigger, out-of-town warehouses more traditionally used by retailers and distributors.

Buildings are becoming taller, with ceiling heights rising from 6-7m up to as high as 25-30m, and wider, with floor space of up to 1m sq ft — the size of 23 football pitches. Technology such as automated packing systems and mechanised storage means tenants can cram more into their buildings.

“The size of these assets now gives international investors the opportunity for scale,” says David Paine, head of real estate at Standard Life Investments. “It is becoming increasingly hard to deploy a lot of capital into offices and retail quickly, but large-scale logistics platforms enable investors to do that.”

UK-listed retail landlord LondonMetric began to move into logistics property two years ago. Its chief executive Andrew Jones says it was a natural next step. “I look at distribution as the fifth type of retail property, alongside shopping centres, supermarkets, retail parks and the high street. As this Christmas is demonstrating, most retailers don’t have [logistics] space which is fit for purpose,” he says.

Investors’ push into Europe follows a similar trend in North America. “Investors are looking at Europe as a place where you can get a significant spread compared to the US market,” says Philip Dunne, president of the European division of Prologis, one of the world’s largest logistics landlords.

Blackstone led the way in the US from 2010 onwards, accumulating the $8.1bn IndCor portfolio that it sold earlier this month to Singapore sovereign wealth fund GIC. It is now trying to replicate the portfolio in Europe with its Logicor platform, which has accumulated 61m sq ft of space across 12 countries.

Mo Barzegar, Logicor chief executive, says four global trends are driving the need for “a more sophisticated supply chain”: globalisation, consumption growth, urbanisation and the changing face of retail.

While few in the industry have the global coverage of Santa, the emergence of pan-continental distributors and retailers also means that even the biggest logistics landlords need to deal with relatively few tenants.

“It is a very homogenous asset class — whether you are in London, Barcelona, Prague or Moscow the boxes are the same and the occupiers to a large extent are the same,” says Mr Jamison.


Delin Capital Builds Portfolio with Major Netherlands Purchase

 Acquires 107,000 m² Logistics Asset in €75 Million Transaction

Delin Capital Asset Management, (‘DCAM’ or the ‘Company’), a Jersey registered real estate investment advisor and asset manager focused on investments in logistics assets in the UK, the Netherlands and Belgium, has acquired on behalf of its clients Casablancaweg 8, the largest, single owned logistics asset in the Netherlands for its €400 million Capital Preservation Portfolio I, (‘CPP I’ or the ‘Fund’). The asset was acquired off-market for a total cost of approximately €75 million from DHG Group, who was also the original developer of the asset.

ING Real Estate Finance, one of the most active financiers in the Dutch real estate market, has funded the acquisition through a new 5 year term loan.

The 107,000 m² logistics asset is strategically located in the port of Amsterdam, the fourth largest port in Europe. It was developed in phases from 2009 to 2011 and it is fully let to six high quality tenants, comprising a mix of manufacturers, retailers and logistics companies, including Fetim, GE Aviation, Heartland, NOV and KWE on a weighted average lease length of five years.

The acquisition is the second transaction between DCAM and DHG Group following the purchase of Distripark Sittard, Born in 2013.

Christian Jamison, Chief Executive Officer of DCAM, commented:

“This is a high quality, well located, modern logistics asset which typifies the sort of investment we favour for our Fund. The Dutch logistics market has become increasingly competitive and so we are very pleased to have secured another asset off-market from DHG. “Furthermore, this is the first time we have leveraged a deal at the outset and we are pleased to be working with such an active lender as ING. We look forward to working with both DHG and ING again as we continue to grow our portfolio of high quality logistics assets.”

DCAM was advised by JLL & CMS Derks Star Busmann. LOYENS & LOEFF acted on behalf of the vendor


Delin Capital Secures c.£70 Million Loan Facility from pbb Deutsche Pfandbriefbank

Delin Capital Asset Management, (‘DCAM’ or the ‘Company’), a Jersey registered real estate investment advisor and asset manager focused on investments in logistics assets in the UK, the Netherlands and Belgium, today announces that is has entered into a new circa £70 million five year term loan facility with pbb Deutsche Pfandbriefbank.

The new loan facility will be secured against a portfolio of eight prime UK logistics assets which are all modern distribution warehouses located in well-established logistics hubs throughout the UK. Comprising 1.77 m sq ft of space, the portfolio consists of:

  • Cabot Park Distribution Centre in Bristol let to Yankee Candle;
  • Agecroft Commerce Park Distribution Centre in Greater Manchester (Salford) let to Bunzl Retail and Healthcare Supplies;
  • Midpoint 18 Distribution Centre in Middlewich let to Kuehne and Nagel;
  • Wakefield Distribution Centre in Normanton let to EXEL UK;
  • West Moor Park Distribution Centre in Doncaster let to The Scotts Company UK;
  • Magna Park Distribution Centre in Lutterworth let to DHL Supply Chain;
  • A distribution centre in the West Midlands, fronting the M6 motorway, let to BTC Active Wear Ltd; and
  • Swift Valley Park Distribution Centre in Rugby which is currently vacant.

The assets are held within DCAM’s €400 million Capital Preservation Portfolio I (‘CPP I’ or the ‘Fund’) fund, its inaugural core plus logistics fund, launched in October 2012. Proceeds of the new loan facility will enable DCAM to continue to target income producing logistics assets across the UK and The Netherlands, to deliver CPP I’s investors secure, long-term, and potentially indexed linked income streams combined with real capital preservation. Christian Jamison, Chief Executive Officer of DCAM, commented: “We are very pleased to have been able to secure this new tranche of leverage which is directly in line with our strategy for CPP I as we remain focussed on the sustainable growth of the Fund. Having successfully leveraged our Dutch portfolio earlier in the year, we are now well placed to recycle further capital into new acquisitions to ensure we continue to deliver accretive capital returns to our investors. “The market opportunity in logistics in our target markets remains extremely compelling, driven by the number of well capitalised institutional investors seeking access to low risk, core income producing assets coupled with strong e-commerce and manufacturing trends. As such, and as a result of the success of CPP I, which we expect to reach its €400 million

Christian Jamison, Chief Executive Officer of DCAM, commented: “We are very pleased to have been able to secure this new tranche of leverage which is directly in line with our strategy for CPP I as we remain focussed on the sustainable growth of the Fund. Having successfully leveraged our Dutch portfolio earlier in the year, we are now well placed to recycle further capital into new acquisitions to ensure we continue to deliver accretive capital returns to our investors. “The market opportunity in logistics in our target markets remains extremely compelling, driven by the number of well capitalised institutional investors seeking access to low risk, core income producing assets coupled with strong e-commerce and manufacturing trends. As such, and as a result of the success of CPP I, which we expect to reach its €400 million

“We are very pleased to have been able to secure this new tranche of leverage which is directly in line with our strategy for CPP I as we remain focussed on the sustainable growth of the Fund. Having successfully leveraged our Dutch portfolio earlier in the year, we are now well placed to recycle further capital into new acquisitions to ensure we continue to deliver accretive capital returns to our investors.”

“The market opportunity in logistics in our target markets remains extremely compelling, driven by the number of well capitalised institutional investors seeking access to low risk, core income producing assets coupled with strong e-commerce and manufacturing trends. As such, and as a result of the success of CPP I, which we expect to reach its €400 million target by the end of the year, we will look to raise new funds to ensure we remain well placed to capitalise on these attractive investment dynamics.”

DCAM was advised by CMS


Paul Marcuse to Join Delin Capital Asset Management

Delin Capital Asset Management, (‘DCAM’ or the ‘Company’), a Jersey registered real estate investment advisor and asset manager focused on investments in logistics assets in the UK, the Netherlands and Belgium, announced today the appointment of Paul Marcuse as a senior advisor to the Company.

Paul brings with him a wealth of experience from the real estate, fund management and investment banking sectors. His long and distinguished career has included roles within Goldman Sachs and Rodamco Group. During his tenure as Chief Executive, between 2000 and 2007, AXA Real Estate Investment Managers became a leading pan-European manager with assets under management of some €40BN. Most recently, he held the role of Group Managing Director and Head of Global Real Estate for UBS Global Asset Management. He is currently Chairman Designate of the Management Board of the Royal Institution of Chartered Surveyors.

Paul’s expertise will complement that offered by Graeme McFaull, who also acts as a senior advisor to DCAM. Graeme was formerly Group CEO of Wincanton plc, the supply chain logistics company, spending a substantial part of his career in senior roles within the European logistics industry.

Commenting on the appointment, Christian Jamison, Chief Executive Officer of DCAM commented:

“Paul has an impressive and established track record in developing fund management businesses and we expect this to greatly benefit the strategic direction and growth of our business. His extensive knowledge of our sector, the finance sector and the broader business environment will provide DCAM with important commercial and strategic insight.”

Paul Marcuse added:

“I look forward to working closely with the DCAM team in realising their vision in growing a significant fund management business by exploiting their impressive knowledge of European logistics real estate.”


Delin Capital Secures €74 Million Loan Against Dutch Portfolio from Düsseldorfer Hypothekenbank

Delin Capital Asset Management, (‘DCAM’ or the ‘Company’), a Jersey registered real estate investment advisor and asset manager focused on investments in logistics assets in the UK, the Netherlands and Belgium, has agreed a new €74 million five year term loan facility with Düsseldorfer Hypothekenbank AG secured against its portfolio of Dutch logistics assets. The assets are held within its €400 million Capital Preservation Portfolio I, (‘CPP I’ or the ‘Fund’), the Company’s inaugural core plus logistics fund, launched in October 2012.

The new loan will deliver 50% LTV against the portfolio of five assets in the Netherlands which DCAM has stockpicked for their modern characteristics and well-established logistics locations.

Delivering circa 190,000 m² of space, the portfolio comprises:

  • Flight Forum Distribution Centre in Eindhoven let to Philips Lighting;
  • Son Distribution Centre in Eindhoven let to Rhenus Contract Logistics;
  • Waalwijk Distribution Centre let to McGregor Fashion Group; and
  • Two multi-tenanted distribution centres located in Tilburg and Born let to tenants including Kuehne & Nagel, DB Schenker and Helly Hansen.

The loan proceeds will be recycled to finance new acquisitions on behalf of CPP I and DCAM.

DCAM was established to target the acquisition of income producing distribution assets in core logistics locations to deliver CPP I’s investors stable and, where possible, indexed linked long-term income returns combined with real capital preservation. DCAM’s location-led investment strategy is focused on core logistics sub-markets in the UK, the Netherlands and Belgium.

Logistics assets within these core selected locations demonstrate defensive qualities through their potential to generate strong levels of income and above inflation capital growth independent of the current economic cycle. The long term trend of the off-shoring of manufacturing output away from higher cost, developed nations to lower cost, developing nations has increased demand for well-located and interconnected logistics assets. Moreover, the ever increasing share of retail spend from delivery based e-commerce has intensified the demand for modern and effective distribution hubs as logistics operators and retailers continue to respond to the structural shift in consumer spending patterns.

Christian Jamison, Chief Executive Officer of DCAM, commented:

“The first leverage we have introduced into the Fund forms part of our strategy to grow at a sustainable level whilst ensuring we do continue to deliver high levels of income distribution matched with above inflation capital returns and is in line with our plan to enhance CPP I’s investors’ returns through the prudent use of leverage.

“To date we have deployed circa €180 million of equity into the European logistics sector representing over 226,000 m² of prime distribution space. Over the coming year we are looking forward to growing the Fund through new acquisitions and by introducing further leverage on specific assets with existing or new lenders as we work towards achieving our €400 million fund size target.”

DCAM was advised by CMS and the valuation of the portfolio was undertaken by DTZ. Düsseldorfer Hypothekenbank AG was advised by Boekel De Nerée.


Delin Capital Makes £81 Million of UK Logistics Acquisitions

Delin Capital Asset Management, (‘DCAM’ or the ‘Company’), a Jersey registered real estate investment advisor and asset manager focused on investments in logistics assets in the UK, the Netherlands and Belgium, has invested a further £81 million in the UK market through two separate transactions. The acquisitions have been made on behalf of its €400 million Capital Preservation Portfolio I, (‘CPP I’ or the ‘Fund’), the Company’s inaugural core plus logistics fund.

In the first transaction, DCAM has acquired a portfolio of five prime distribution assets covering over 1m sq ft (95.5 k m²) of space for circa £66 million from InfraRed Capital Partners Limited (‘InfraRed’). The purchase price reflects a net initial yield of 7.2% after allowing for rental guarantees.

Two of the assets are located within the main distribution hubs of Magna Park and Swift Valley Park within the UK’s logistics ‘Golden Triangle’, and two in prime North East distribution parks. The final smaller asset is located in close proximity to Birmingham and its motorway network. With a weighted average lease length of 7.8 years, the assets are let to a variety of strong covenants including DHL, Scotts Mircale-Gro and BTC Active Wear, all of whom operate the buildings as national distribution centres.

Further details on the assets:

  • Castleford: A 382,000 sq ft warehouse located in the Normanton/ Wakefield Europort distribution hub, which is situated near to Junction 31 of the M62. The property is fully let to Exel UK Ltd with a guarantee from DHL Supply Chain Ltd on a full insuring and repairing lease expiring in 2022;
  • Doncaster: A modern, high specification distribution warehouse of circa 164,000 sq ft located on West Moor Park, a prime distribution/business park located some 5 miles to the north east of Doncaster town centre. The asset is immediately adjacent to Junction 4 of the M18, providing direct access to the national motorway network. It is let to The Scotts Company (UK) Limited and guaranteed by The Scotts Miracle-Gro Company, until 2026;
  • Lutterworth: The property comprises a high spec distribution warehouse of 164,000 sq ft located on Magna Park within the ‘Golden Triangle’. It is let to DHL Supply Chain Limited on a full repairing and insuring lease, expiring in 2023;
  • Rugby: The 212,000 sq ft property is strategically located on Swift Valley Park within the UK’s logistics ‘Golden Triangle’ formed by the M1, M6 and M69 motorways. The property is currently vacant providing an opportunity to add value through asset management.
  • Wednesbury: A high specification, modern standard distribution warehouse of 105,000 sq ft located to at Junction 9 of the M6, near Birmingham. The asset is let to BTC Activewear until 2019.

DCAM was advised by Jones Lang LaSalle and CMS. InfraRed was advised by GVA and Taylor Wessing.

In a second, separate transaction, DCAM has acquired a modern single-let standard distribution warehouse in Middlewich from receivers, Allsops for circa £15 million, reflecting a net initial yield of circa 7%.

Located on the M6 corridor which links Manchester and Liverpool with Birmingham, and with good accessibility to both the Midlands and North West regions, the 353,000 sq ft (32,000 m²) warehouse is let to Kuehne and Nagel Ltd on a full insuring and repairing lease expiring in 2017. The tenant is currently operating a FIAT contract from this site.

DCAM was advised by CBRE and CMS. DLA Piper acted for Allsops.

Christian Jamison, Chief Executive Officer of DCAM commented:

“We are very pleased to have made such a significant step forward in terms of growing CPP I’s investment in the UK market, which continues to be very competitive. By executing both these transactions within 10 days of commencing due diligence, we have demonstrated our capability to move quickly and decisively for attractive acquisitions. We continue to search for value and we will now look to add leverage to our UK portfolio as we have done recently with our Dutch portfolio.

“All these assets satisfy our investment criteria of offering high quality modern space in strong UK locations. Although the majority of the space is long let, these assets also offer some opportunity for asset management and therefore the potential to deliver value growth through new lettings or re-gears in an improving occupational market.”