Heaptalk, Jakarta — ADDX, a digital securities exchange, announced that a European logistics real estate fund managed by Elite Partners Capital has completed the sale of USD 590 million of its entire portfolio managed by Blackstone Group. The fund demonstrated that the logistics real estate sector has outperformed other sectors over the last two years.
The individual accredited investors on ADDX had subscribed to the Elite fund in two offerings in June and December 2020. The Singapore blockchain-based investment platform divided fund units, blockchain efficiency, and smart contracts that allow this securities exchange to minimize investment size. As a result, ADDX investors have obtained 98% of the proceeds from the sale to Blackstone. The remaining will be distributed after formally completed this year.
The demand for logistics and e-commerce facilities soared due to supply chain disruptions that prompted companies to increase inventory levels for food, essential goods, and other consumer products to ensure they could meet demand consistently. The high-tech facilities at the cargo terminal at Prague airport were also involved in vaccine storage and delivery.
The Portfolio Director of Elite Logistics Fund l, Enoch Tan, delivered a statement, “Our investment approach focused on well-performing logistics real estate in developed European markets. Even before the pandemic, we were bullish about logistics because of the broader expansion of the e-commerce industry and new demand for space in the UK arising from Brexit,”
Tan also added, “This strategy paid off, as we acquired assets which were fully tenanted and achieved 100% rent collection throughout the pandemic. In contrast, rent collection for retail and office space plummeted to under 50% across Europe. The rental collection became one of the key performance matrices for real estate investments in the past two years. Therefore, the logistics assets are sought due to their low rates of rental delays consistently,”
The portfolio will be rebalanced for logistics real estate globally after the pandemic. This balancing effort is predicted to significantly increase investor demand for assets in terms of rising valuations and contribute to higher-than-anticipated returns by Elite Logistics Fund I.
On the other hand, The Chief Commercial Officer of ADDX, Oi Yee Choo, revealed a statement, “Private real estate funds continue to look compelling in the current market, offering an income play along with the potential for asset appreciation. Investor demand for real estate offerings has therefore been robust over the past year, especially when they involve the logistics sector,”
Yee Choo also added, “The stellar performance of this fund also underscores the importance of investing with experienced, high-quality asset managers like Elite, who are equipped with a well-thought-out investment strategy as well as a proven ability to execute on it. The case for investing in a fund also becomes stronger when there is a strategic Limited Partner (LP) investor with a global reach, such as Macquarie in the case of this fund.” (SFM)
