Cording launches new core-plus light industrial fund

Cording Real Estate Group, part of the Edmond de Rothschild Real Estate investment and asset management platform, has launched an open-ended fund to invest in core-plus European industrial assets.

The Cording Euro Industrial Real Estate Fund has been launched with an undisclosed equity commitment from Edmond de Rothschild and from a mandate managed by the multi-manager real estate team of Credit Suisse Asset Management.

The core-plus fund will invest in light industrial and small logistics properties across the Eurozone, Cording said, adding that it has secured a strong pipeline of investment opportunities and has already signed the acquisition of 7 assets. It is targeting an average net income return of over 6% per annum for its institutional investors over a ten-year period.

The new fund will be domiciled in Luxembourg in the form of an FC-RAIF, with Pancura SA acting as alternative investment fund manager and Aztec Group as the central administrator.

Cording has built up a portfolio of more than €300m of industrial properties, growing rapidly particularly over the last five years, with its main European focus being on Germany and Benelux.

Reiner Beckers, head of business development at Cording, said: “We believe this is a perfect time to launch an industrial fund. There is the opportunity to benefit from expected rental growth owing to the demand for space outstripping supply. “This is particularly true of industrial sites in urban areas. We also aim to enhance income through our proven active asset management initiatives.”