Panattoni diversifies with launch of €600 million European logistics income fund

Panattoni has announced the launch of a pan-European fund focused on investing in modern, sustainable logistics properties that generate income. The Panattoni Income Fund is based in Luxembourg and features an open-ended, evergreen structure. The fund aims to raise €300 million in equity by 2026, with plans to acquire assets totaling €600 million, all developed and managed by Panattoni. The company’s owners and management team will also participate in the investment.

The fund is designed to provide investors with sustainable income along with capital appreciation. It will target stabilized assets and forward-purchase pre-let developments with top sustainability ratings in countries where Panattoni operates, including Central and Eastern Europe—particularly Poland—alongside the UK, Italy, Spain, Germany, Austria, the Netherlands, and Scandinavia. To kick off the fund, it will be seeded with stabilized assets already managed by Panattoni in Poland.

Krzysztof Dudek, managing director of the fund, will oversee operations, investment activities, portfolio and asset management, as well as fundraising. Before joining Panattoni, Dudek served as head of real estate investment management at TFI PZU, the investment arm of PZU Group, which boasts a commercial real estate portfolio nearing €1 billion.

Przemyslaw Konieczka has been appointed as the executive director of the fund, responsible for strategic investment initiatives and portfolio management. Prior to his role at Panattoni, he held positions as fund manager and investment director at TFI PZU.

“This is an opportune time to be creating Panattoni’s first income fund,” Dudek stated. “The post-COVID market correction has made yields for industrial and logistics properties more attractive. There is a substantial amount of capital waiting on the sidelines for market repricing and favorable financing conditions.”

Dudek highlighted the positive demand-supply dynamics within the logistics sector, emphasizing that limited supply—due to land scarcity, regulatory barriers, and rising construction costs—coupled with strong demand driven by e-commerce growth and new manufacturing, provides a promising outlook for rental growth.

Daniel Raemy, a member of the advisory board at the Panattoni Income Fund, echoed these sentiments, noting, “Investing in industrial and logistics properties presents a compelling opportunity for attractive long-term returns. The current market shortage, along with a growing focus on ESG-compliant assets, gives the fund a competitive advantage in accessing premium projects.”

The establishment of the Panattoni Income Fund marks a continued diversification effort by Panattoni, which is recognized as the largest provider of logistics and industrial development and investment opportunities across Europe. In April 2022, the company launched the Newport Logistics Fund to finance select Panattoni developments. Last year, logistics real estate veteran Nick Preston was appointed head of the newly created Panattoni Investment Management, providing additional pools of capital for the company.