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Corona Press releases

09.04.2020, Germany

Will the coronavirus lead to the streamlining of logistics property developers and job cuts? Realogis-RLI Group on the impact of the coronavirus on the property market for industrial, warehouse and logistics space

Munich, 9 April 2020 – Whereas the office and retail property segments are increasingly expected to experience rent losses as a result of the global coronavirus pandemic, the leading German Realogis-RLI Group anticipates less of an impact on industrial, warehouse and logistics space. “There is currently a huge range of developers in the logistics property segment. However, the coronavirus pandemic will lead to streamlining and improved quality,” comments Umut Ertan, founder and partner in the Realogis-RLI Group. “Large foreign sources of capital are already seeking alliances with local players that have never really grown beyond their region. Some developers that have not kept sufficient equity available are now looking for strategic partners for joint development,” says Umut Ertan. “At the same time, familiar players will try to return to the market.” More

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07.04.2020, Deutschland

Institutional investors: Massive capital reallocation in favour of logistics properties anticipated – Realogis-RLI Group on the impact of coronavirus on the property market for industrial, warehouse and logistics space

In the USA, 30% of institutional capital is invested in the “industrial sector”, and this figure has been rising for decades. The majority is attributable to logistics. According to the Realogis-RLI Group, logistics properties currently account for almost 15% of allocated capital in Germany, compared with 7% over ten years ago. “In the next ten years, the high-end logistics sector in Germany will see capital allocations of between 30% and 50% among institutional investors,” says Umut Ertan, founder and partner in the Realogis-RLI Group, confidently. “Residential and logistics are the most crisis-resistant asset classes within the property sector as a whole. Looking at commercial property alone, logistics is the most crisis-resistant asset class.” The Realogis-RLI Group engages in a continuous dialogue with almost 100 indirect institutional investors, family offices, sovereign wealth funds and direct investors. They all confirm their intention to increase the proportion of their capital allocated to logistics. “Many are thinking about scaling back their investments in offices and business centres, large-scale specialist retail spaces, shopping centres and hotels or even eliminating them altogether,” adds Umut Ertan. “Over the next 12 to 18 months, logistics will see an unprecedented run in terms of capital reallocation.” More

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