Delin Capital ramps up Dutch projects, targets UK and Spain

Delin Capital Asset Management (DCAM) targets acquisitions in the UK and Spain as it plans to invest €400m in the Netherlands by mid-2019.

The European logistics specialist said it currently has 126,000sqm of logistics assets under construction and a further 174,000sqm in permitting and site preparations in the Netherlands.

A further 174,000 of sqm of development is currently in permitting, with construction anticipated to commence in the first half of 2018.

In total, the company is targeting a committed development pipeline of 900,000sqm across the Netherlands, UK and Spain by 2019, it said.

To support this plan, Delin Capital said has made a number of senior hires in the UK and Spain and is currently in advanced discussions on a number of acquisitions in both countries.

Ekaterina Avdonina, the managing director of Delin Capital, said: “We continue to see strong demand from a range of occupiers for big box assets, supported by a favourable economic backdrop stimulating exports, retail sales and consumer spending.

“Having built up a strong presence across our key markets and with the talent in place to both further build and deliver on our significant pipeline, we are well positioned to benefit from the ongoing tight supply and lack of new development and deliver significant future value from our investments,” Avdonina said.

Avdonina added that the company expects the wider European landscape to remain favourable for well-established logistics operators as it moves into 2018, “and are excited for the opportunities we are seeing.”

Jose Espinoza, the development director for Delin Capital in Spain, said: “The Spanish logistics market offers an attractive opportunity for investors and developers, as the domestic economy recovers and increasing consumer spending supports the rapid growth of the e-commerce sector.

“We have identified a number of opportunities through leveraging our strong local relationships and look forward to positioning DCAM as a major developer of high-quality logistics assets in the future.”


Read article on Real Assets website

Delin unveils 900,000m2 logistics development pipeline

Property EU  - By Isobel Lee 

January 21st, 2018 

Delin Capital Asset Management (DCAM) is to develop 300,000 m2 of new logistics space in the Netherlands over the next 18 months.

The fund manager is also launching development in the UK and Spain and is targeting a committed development pipeline of 900,000 m2 across the three markets by 2019, managing director Ekaterina Avdonina tells PropertyEU.

DCAM's €400 mln development programme in the Netherlands comprises of 126,000 m2 of Grade-A logistics assets under construction and a further 174,000 m2 in permitting and site preparations, comprising both build-to-suit (90,000 m2) and speculative development.

The logistics fund manager, which branched into development in mid-2016, recently secured two long-term pre-lets with Dutch third-party logistics operator Van der Helm for 17,000 m2 at Moerdijk in the south of the country and 15,000 m2 at DCAM's Rotterdam development.

A further 174,000 of m2 of development is at the permitting stage, with construction set to commence in the first half of 2018.

DCAM is targeting a total committed development pipeline of 900,000 m2 across the Netherlands, UK and Spain by 2019. To support this ambition, DCAM has made several senior hires in the UK and Spain and is currently in advanced discussions on several acquisitions in both countries.

Development capacity
Ekaterina Avdonina, managing director of DCAM, talked to PropertyEU about the firm's move into development.

Starting as a fund manager DCAM now has three business lines: a fund managed in 2012; a vehicle established with Blackstone in 2017 to acquire existing assets, and the development fund.

'Launching our development plans in mid-2016, we hired our first development director for the Netherlands and we wanted to prove the development case in our home markets of the Netherlands and the Benelux, and then expand it to other markets with which we were less familiar,' Avdonina said.

'It has s gone pretty well we have amassed a huge Dutch pipeline for 2018 and we have more we are working on for 2019.'

Avdonina said DCAM has a very large development team in the Netherlands: construction to engineering specialists, an in-house design team, in-house development team, and occupier specialists. 'Everything is done in-house. This pretty large outlay has resulted in a very large pipeline,' she said.

About 100,000 m2 of the Dutch pipeline is pre-let, which Avdonina described as a normal run rate. 'We believe we will secure another 100,000 m2 of pre-lets before the summer and the remaining 100,00 m2 later in the year before the completion of the projects. We feel very confident it will materialise given the interest shown by occupiers to date in our schemes.'

'We continue to see strong demand from a range of occupiers for big box assets, supported by a favourable economic backdrop stimulating exports, retail sales and consumer spending.

The key, she said, is prime locations with little or no vacancy. Most of DCAM's development work is e-commerce and supply chain driven.

Avdonina: 'Having built up a strong presence across our key markets and with the talent in place to both further build and deliver on our significant pipeline, we are well positioned to benefit from the ongoing tight supply and lack of new development and deliver significant future value from our investments. We expect the wider European landscape to remain favourable for well-established logistics operators as we move into 2018, and are excited about the opportunities we are seeing.'

The UK
DCAM has a full team in the UK, including two dedicated development specialists. Work to secure sites is at an advanced stage. The business model is like the approach used in the Netherlands. 'We will do speculative development at infill locations in key areas such as Manchester, London, Birmingham Leeds,' Avdonina said.

The focus in regional distribution locations in the Midlands will mainly be on BTS projects. DCAM already has options and reservations on some potential sites.

The Spanish business evolved through two BTS schemes being undertaken for an existing DCAM client. The plan is to also undertake some speculative development around Madrid.

Jose Espinoza, development director for DCAM in Spain, added: 'The Spanish logistics market offers an attractive opportunity for investors and developers, as the domestic economy recovers and increasing consumer spending supports the rapid growth of the e-commerce sector. We have identified a number of opportunities through leveraging our strong local relationships and look forward to positioning DCAM as a major developer of high-quality logistics assets in the future.'

Read the article on property EU website

Groundbreaking Ceremony

With great excitement, we celebrated the ground-breaking on the e-commerce centre in Roosendaal, this is the first DCAM development in the Netherlands. The project is progressing smoothly and running to schedule. This new 58,000 m² DC is located in business park Borchwerf II and will be leased to Lidl for their e-Commerce logistics activities. The warehouse will become operational in Spring 2018.

Symbolische eerste kolom e-commerce centre Roosendaal geplaatst Op feestelijke wijze is de spreekwoordelijke eerste kolom geplaatst voor de bouw van het e-commerce distributiecentrum in Roosendaal, het eerste project in Nederland waar DCAM optreedt als ontwikkelaar. De werkzaamheden verlopen vlot en volgens schema. Dit nieuwe 58.000 m² tellend logistiek centrum is gelegen op het bedrijventerrein Borchwerf II en zal verhuurd worden aan LidL die er de logistieke activiteiten van hun e-commerce afdeling zal onderbrengen. De vestiging zal in het voorjaar van 2018 in gebruik worden genomen.

The European Logistics Market

Demand for logistics assets to double by 2025 as e-commerce grows to make up 20% of retail activity from the current 9%.   Logistics has become the fastest-growing sector in real estate across Europe, and is perceived as the least politically sensitive asset class.


The extra mile: The logistics sector has come a long way from warehousing and distribution

The extra mile: The logistics sector has come a long way from warehousing and distribution

You know what they say about property investment; “location, location, location.” Well, here’s another mantra with an l-word; “logistics, logistics, logistics.” There is seemingly no end to investor interest in the real estate facilities needed for the efficient and time-sensitive storage and movement of goods between source and end-user and there are good reasons for that.

A lot of it has to do with e-commerce. Penetration rates for online retailing across Europe vary between market, depending on country, computer usage and culture, and a common factor is the requirement for state-of-the-art storage and distribution facilities and systems that are able to handle the flow of product from factory or field to retailer, and from retailer to customer and back. But the further common factor that excites most is that those online penetration rates are still rising and will continue to rise across a broader range of products — this is not a static market but almost a real estate investor’s dream come true. “Logistics is moving from being an ugly duckling to a beautiful swan,” says Dirk Sosef, vice president of research and strategy at Prologis.

“Logistics hasn’t always been so popular,” points out Phil Redding, CIO of UK-REIT SEGRO Plc. “We have been in this sector for nearly 100 years, so it is slightly surprising to us that it hasn’t been more popular. An easy way to see how big e-commerce or online retailing is in a country is to count how many Amazon sheds there are,” he adds. (Amazon shares, listed at $18 in May 1997, recently hit $1,000, a 55-times increase over 20 years.)

Personal connections 

“Logistics is more popular than ever,” says Rémy Vertupier, fund manager of AEW’s €1.7 billion LOGISTIS Fund, “because of the highly-positive supply/demand dynamics of the sector. Structural changes are having a major impact on supply-chain management around the globe and we can be reasonably very positive for the future of logistics as an asset class.

“There is also a ‘trend’ effect,” Vertupier continues. “Investment style can be affected by trends and the trend here is e-commerce. E-commerce gives every individual a personal connection with logistics. When you look at the portfolios of the large investors, they are underallocated to logistics. If you do some maths on the best possible allocation between office, retail, industrial and logistics, for an optimised portfolio you should have between 5 percent and 10 percent in logistics.”

“Logistics remains our top sector,” Simon Wallace, head of research, Europe, alternative and real assets, at Deutsche Asset Management, comments. “Compared to office or retail, logistics is expected to be the outperformer. If you go back three or maybe five years, there was always the perception that if you bought logistics you would do well.”

Redding agrees with the characteristics that continue to attract investors to logistics: the high income return, the relatively quick development periods, the long leases, relatively strong covenants. “They have all been around for quite a while. But the recent step change is the rise in demand caused by the explosive growth of online retail.

“There has not been a commensurate increase in supply, so what we are getting is almost ideal market conditions of robust, growing demand meeting fairly-constrained supply, and that is equalling rental growth,” Redding adds. “That rental growth in logistics is what is bringing a lot of new entrants into the sector.”

Will that growing popularity result in the bubble and crash that we have seen so often before? “We don’t see that there will be a sudden correction from current levels,” Redding says. “There is interest to invest at the current levels from a wide and diverse group of investors, so the pricing at those levels is very well supported.”

Questions and answers 

For José Pellicer, partner and head of research at Rockspring Property Investment Managers, demand for logistics is not the issue. “The demand is undisputed. The question is more who is driving the demand — investors or occupiers?” Pellicer suggests.

“Investors have this idea that the only driver of logistics demand is e-commerce. That’s not correct. The vast majority of logistics is old-fashioned trade. The key demand driver for logistics is still international trade, not just of consumption goods but also components and capital goods. And manufacturing. “Retailers are changing their supply chains to adapt to the rise of e-commerce and need facilities to handle fulfillment, urban distribution and returns. Supply adapts to demand very quickly in logistics — if there is money to be made, someone will jump in to grab that money,” Pellicer points out “Investors need to find out where demand is highest and supply most restricted. Investors can’t get enough of logistics but you have to discriminate; where there is demand and limited supply is where you will find rental growth. It is the supply question that needs to be asked.”

Year after year after year 

“No other sector can demonstrate occupier growth year-on-year over the past five years like the logistics sector,” says Ekaterina Avdonina, managing director of Delin Capital. “Every other year has been a record year for occupational take-up. Nothing like that has been seen in office or retail. The majority of institutional investors started looking at logistics because of the structural drivers rather than the economic drivers that were underpinning the growth.

“The defensive character of logistics has been known about for a long time,” Avdonina points out. “Most of the return is derived from income and for fixed-income investors buying logistics has been a great diversifier. Logistics has very little volatility, 90 percent of the return derives from income, and that makes a really good story.”

“The retail market is going through a seismic change and technology is at the forefront of that,” says Andrew Jones, CEO of UK-REIT LondonMetric Property Plc. “How we shop and interact is evolving, and logistics is a large part of the change. Every retailer has a slightly different strategy for dealing with this. Some retailers cover a country or region with one large warehouse. Others adopt a hub-and-spoke model, with the hub located strategically and the spokes placed around the major urban conurbations. And someone like Amazon will do everything, the full spectrum.”

“The last mile is very important,” says Jones. “Making very bold delivery promises is what will allow retailers to build their brand with their end-customers.”

Dmitry Kostygin, chairman of Russian e-commerce retailer Ulmart, has a different perspective. “Logistics is a never-ending story of evolution,” he explains. “There is always change and room for improvement.” Kostygin, for example, sees scope for a new type of real estate for online retail in Russia: distribution or fulfillment centres that are accessible to customers, look slightly better outside than just a shed and with some parking, a sort of warehouse club.

“Our investment team has been active in the market and is positive about logistics,” says Greg Mansell, head of research at AXA Investment Managers – Real Assets. “Logistics is popular from an investor’s point of view because demand is outstripping supply. Performance in the medium term is expected to be stronger than that of offices and retail as well. Agreed, yields have come down quite a bit, to below 6.5 percent on average across Europe. That’s down a long way from where we were four or five years ago, and the spread between logistics and offices has also come in.

“But I don’t think that investors are getting ahead of themselves,” says Mansell. “It’s more to do with the lack of supply. Investors are looking for assets and there aren’t that many out there.” Limited availability of good logistics product and high investor demand is pushing prices up.

Where could it all go wrong? “It could go wrong if there was excess supply,” says Pellicer. “If developers and investors start building like crazy, occupiers will have choices and rents could fall.”

Someone else’s problem

Nothing has changed in logistics and yet everything has changed. The sector has morphed from the once-unloved and low-tech but tolerated warehousing and distribution sector into the fancied and highly-desirable high-tech supply-chain facilitator that it is today — whether classic retail from factory or farm to shop shelf or whichever-way-you-want omnichannel retail from distribution facility to consumer.

It is arguable that logistics has gone the extra mile and usurped retail as the second commercial real estate sector after offices. No real estate owner wants voids or vacancies but in the current environment it’s likely that they would rather have an empty shed than an empty shop as it’s more likely to re-lease quickly. Depending on “location, location, location.”

Fortunately, the vexed question of how much longer retailers can continue to bear the rising costs of the rapid online deliveries and generous and penalty-free returns policies that consumers have come to expect is not one that investors in and owners of logistics facilities will have to concern themselves with too much.

3D printing? No worries 

Fears that the wider adoption of 3D printing could have adverse consequences for operators and owners of logistics facilities have been debunked by senior executives of leading developers and investors. Hamid Moghadam, CEO of Prologis, told delegates to this year’s INREV annual conference in Berlin that “the material that goes into a 3D printer has to get there somehow. I think we’re good.”

Ian Worboys, CEO of P3 Logistic Parks, the former PointPark Properties that is now owned by GIC, made the same point another way in an interview during last year’s Expo Real event in Munich: “If every household has a 3D printer,” he said, “it [and all the parts that go into it] will have to come through a warehouse. Things are not printed out of thin air. If you have a 3D printer, you will have to put in the basic materials. These materials will all have to go through a warehouse.

“At the moment, it’s all a bit science fiction and maybe in 20 years’ time you won’t be buying anything, everything will go through the 3D machine,” Worboys adds. “But you will still need the basics for the machine to make it work. There will be a pretty big supply chain around that.”

Richard Fleming is editor of Institutional Real Estate Europe. He is based in Kimberley, United Kingdom.

For further information please contact:

Delin Capital Asset Management
Ekaterina Avdonina
+44 (0)207 487 1220

FTI Consulting on behalf of Delin Capital Asset Management
Dido Laurimore / Richard Gotla
+44 (0)20 3727 1000


Keep the industrial faith - it will pay off

Industrial  and logistics real estate is undergoing a transformational renaissance. Warehouses now form the spine for a modern supply chain.

Click below to read the full press release



Onward and upward

Logistics real estate has become a plum target for investors as e-commerce and automation transform the business landscape in urban areas across Europe. Paul Hamblin takes the temperature.

Click below to read the full press release


Third-party logistics providers: the space race

Third-party logistics providers: the space race - Property Week

The changing requirements of retailers and their 3PL providers, driven in part by thgrowth in ecommerce, has made developing speculatively an even riskier business than it might otherwise have been. "Everyone tries to build a unit that meets all requirements , but the nature of demand is much broader and more complicated than generic storage, " says Ekaterina Avdonina, chief executive at Delin Capital.

'About 50% of the demand at the moment is retail-and ecommerce-driven. That is a very specific, time-critical demand, which demands a different type of facility."

Read the full article here on Property Week

Many unhappy returns

MIPIM - Preview magazine
Ekaterina comments on the rise of e-commerce and the phenomenon of merchandise returns.

"Typically for online fashion retailers, every third package is returned, which obviously creates a massive cost, not only for transportation but for processing"

Read the full pdf article here

2017 The Challenges Ahead - Ekaterina responds to Property Investor Europe's questions.


This year will be remembered as a year of political shock waves. First Brexit and then the election of Trump to the White House proved that political unpredictability is now at the core of the financial system, with both events wiping billions of dollars from markets, albeit temporarily. Whilst the overall market conditions in the real estate arena have remained largely unchanged, the uncertainty around the political futures of the UK, the US and the rest of the Eurozone is now dominating both the political and economic agendas of real estate investors.


Core income-driven strategies and value-add strategies will dominate the focus of real estate investors. Real estate returns will remain an attractive diversifier to equities and bonds. Repricing of bond markets / fixed income products and increasing inflation may lead to a decreasing allocation towards real estate assets, which in turn may have a negative impact on core pricing, which we consider to be a primary risk.


DCAM is a real estate investor, manager and developer of logistics assets, and we focus on sustainable locations which appeal to a majority of occupiers, with a particular focus on e-commerce players. Due to the unprecedented growth of logistics occupier demand, we consider the availability of land to be our key challenge for next year.


After heading the investment team at DCAM for  a number of years, I took over the management of the business with a change of direction in mind.

Published in Property Investor Europe | Edition 430 | December 2016 / January 2017 |