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.