Verdion secures additional €100 million for its Verdion European Logistics Fund 2

Verdion has secured an additional €100 million for its Verdion European Logistics Fund 2 (VELF 2), raising total closed capital for its second value-add fund to over €300 million.

This latest commitment, finalized at the end of 2024, follows a €150 million investment made in September by CBRE Investment Management, acting on behalf of its Indirect Private Real Estate Division. The initial closings of €75 million were sourced exclusively from investors in Verdion’s inaugural VELF 1 fund, launched in 2020. The fundraising process for VELF 2 is ongoing.

VELF 2 focuses on acquiring and repositioning under-capitalized and under-managed logistics assets in established markets across Northern Europe. Leveraging Verdion’s vertically integrated team and in-house technical expertise, the fund undertakes refurbishment and development projects aimed at transforming properties into high-performing, ESG-compliant assets.

Recent activity includes:
• A second acquisition and major pre-let to cosmetics distribution brand Sæther, near Helsingør, Denmark.
• Completion of a €33.5 million, DGNB Gold-certified distribution center in Horsens, Denmark, in mid-2023.

Further acquisitions are planned, with a strong pipeline focusing on Germany, alongside Sweden, Denmark, and the Netherlands.

Track Record of Success

Verdion’s first fund, VELF 1, closed in 2020 after raising €158 million. Together with debt financing, the fund invested over €300 million across 11 logistics assets in Germany, the Netherlands, Denmark, and Czechia. Notable transactions include:
• The 2022 sale of a facility for UPS near Prague Airport.
• Ongoing disposals of assets in Germany and the Netherlands, expected to close in Q1 2025.

Simon Walter, Executive Director – Investment Management at Verdion, stated: “Securing this additional commitment is a clear endorsement of our strategy, particularly in a challenging capital-raising environment. Our focus on creating and repositioning market-leading assets, underpinned by technical innovation and strong ESG credentials, continues to resonate with investors from the US, Northern Europe, and Asia-Pacific.”

Verdion’s value-add strategy and robust pipeline underscore its leadership in the logistics real estate sector, positioning VELF 2 for continued growth and success across Northern Europe.