NAO LOGISTICS: a new reference thematic fund in logistics real estate, a dynamic and resilient asset class

Accessible to professional investors, this new vehicle in AIF format (Alternative Investment Fund) and established as a SCCV (Civil Variable Capital Company) aims at a target return of 6% of the net investor (net IRR total). [1]). To achieve this goal, the management team has designed a pure and dynamic investment strategy that is likely to take advantage of the structural catalysts – especially growth and securing long-term rental income – that drive real estate logistics, an asset class now institutionalized.

A combination of performance sources

In detail, the strategy of NAO LOGISTICS is based on a high level of diversification and the identification of investment opportunities in “core”, “core +” and “added value” assets, new or acquired on to the secondary market, in France and Europe. .

The combination and dynamic management of these types of assets allows you to benefit from different levels of risk premiums and sources of yield: the “core” bag constitutes a base of “prime” assets that generate stable and secure cash flows over long periods periods, while the “core +” pocket is intended to optimize performance, capturing the rental reversion on assets purchased with shorter rental terms. More marginally, significant risk premiums are captured via “value added” investments, both in off-plan acquisitions and in the redevelopment of industrial land and business parks.

This implementation will result in a varied mix of underlying assets: regional hubs and XXL warehouses, last mile warehouses, couriers, business parks, industrial premises.

Take advantage of megatrends in 15-20 years

“Based on our expertise of more than 25 years in the field of logistics promotion, we wanted to facilitate and structure the access of professional investors to this unique source of value. We are convinced of the growth potential of the asset class that is supported by megatrends of 15-20 years. The rise of e-commerce, the reindustrialization movement in Europe or the redefinition of supply chains sustainably support the needs of storage capacity. Among a unprecedented visibility on rental profitability in the real estate market and mechanical protection against inflation through indexation, logistics assets become essential in the “allocation mix” of investors. says Christophe Bouthors, president of the Panhard Group.

The NAO LOGISTICS portfolio will consist of 90% real assets and 10% of a financial and cash component, the management of which is entrusted to Lazard Frères Gestion. The investment horizon of the fund is 8 years.

Finally, NAO LOGISTICS is classified “Article 8” (Best in progress) under the SFDR regulation. [2], based on a proven ESG methodology. The fund promotes sustainable investment in assets that contribute to the environmental transition and meets the requirements of an ESG analysis grid and assessment for assets. The main extra-financial indicators used relate, among others, to energy performance, greenhouse gas emissions, water management, biodiversity and the mobility solutions available to the site’s occupants.

“Our long-term vision and our sustainable approach to investment are part of the alignment of issues and interests with our investor clients. In addition, we decided to create a unique vehicle accessible to both institutional investors and professionals in the distribution of savings products, which guarantees a consistent, efficient and synchronous approach to investment opportunities” concludes Christophe Bouthors.

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