Global real estate: Logistics centres reach a new milestone
In February, Legal & General Investment Management (LGIM) invested more than £100 million (€117 million) in UK industrial real estate sites, citing investors’ enthusiasm for the sector as a result of Covid-19.
The firm is one of many worldwide seeking to increase exposure to industrial and logistics properties – a trend galvanised by the accelerated shift towards online retail during government-ordered lockdowns to combat the pandemic.
According to LGIM, the rise of e-commerce and a scarcity of “high-quality, well-located” industrial assets has created a significant supply-demand imbalance.
The main issue facing the logistics and industrial sector, aside from climate change, is this lack of assets, says Jonathan Holland, senior fund manager at LGIM Real Assets.
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