Property Investor Europe

While European logistics offer opportunities across the board, urban schemes represent an especially good development strategy for the long-term, says Ekaterina Avdonina, Vice-President and Head of Investments at Delin Capital Asset Management, and panelist at the PIE Logistics Property Breakfast this month.

“Key gateway markets and major urban conglomerations all represent great development opportunities,” Avdonina told PIE in a pre-event statement. Urban logistics in particular is still relatively unsaturated across key European cities and thus represents a good development strategy for the long-term. “Over the short-term, we favour locations in land constrained markets with excellent multi-modal accessibility and good availability of labour, as all major logistics sites are becoming increasingly labour intense,” she added.

The sector in general has posted unprecedented investment volumes, surpassing the previous peak by 50%. “International capital is recognising the structural reconfiguration of supply chains in light of consumer spending changes and growth in e-commerce,” said Avdonina. She also underlined that modern logistics stock is scarce in Europe, both per capita and per GDP, when compared to other advanced markets such as the US. “These structural forces are behind the increase in investment volumes.” At the same time, the sector is experiencing a re-rating from an alternative to a mainstream property asset class alongside offices and retail. “Attractive fundamentals and higher yields make logistics and light industrials probably still the best “€˜priced’ asset class available today,” she told PIE.

Avdonina will be part of a panel of experts discussing value opportunities in European logistics at the PIE Logistics Property Breakfast on 29 October at the London City offices of law firm DLA Piper.