21 November 2019
Dutch institutional investor Bouwinvest has allocated $65 million (circa €58 million) to last mile logistics properties in the United States on behalf of its North America Mandate for bpfBOUW, the Dutch Construction Workers pension fund. The new asset allocation focus forms part of Bouwinvest’s strategy to grow its North American portfolio to €1.7 billion, from €1.3 billion currently.
Gijs Plantinga, Director Northern American Investments, said: “Last mile delivery - the final stage of the delivery of a package or product to the consumer’s home - is one of the most important steps in the supply chain, especially now that the growth of same-day delivery is growing exponentially. Demand for this type of real estate in major U.S. cities is huge.”
Bouwinvest’s investments in the sector will be made, in conjunction with other institutional investors, through the sixth core-plus fund of High Street Realty Company -- a Boston-based private equity real estate investment manager focusing exclusively on institutional quality industrial and logistics properties. The fund targets small distribution properties in major markets in the eastern two-thirds of the U.S., including Chicago, Dallas, Houston, Atlanta, Northern New Jersey, Philadelphia Metro/Central Pennsylvania, Baltimore-Washington and central and south Florida.