The BF Group and the Fox Group are establishing a joint venture that focuses on financing logistics projects in Germany. This is stated in a press release dated October 6. Into the new BF.infrastructure finance, the Fox Group is said to contribute a proprietary “Deal-Pipeline” and identify suitable financing objects, while the BF Group mainly contributes its credit expertise. The management is to be staffed on a parity basis by the BF Group and the Fox Group.
Market potential for alternative financing
According to the press release, the aim
of the joint venture is the establishment of debt structures that provide professional investors with investment opportunities in the field of logistics real estate project development and that offer developers of real estate projects a tailored financing solution. The joint venture partners want to respond to attractive return opportunities in this area. The capital requirement is high, while at the same time the banks are holding back, it says. There is therefore market potential for alternative financing in the logistics real estate project development sector. Furthermore, the segment is
considered attractive by the cooperation partners because the default risk in logistics financing is relatively low – among other reasons due to the high space requirements and the short capital-commitment period in the target product envisaged here.
Francesco Fedele, CEO of BF.direkt AG, says:
„We see a clear market gap in the area of alternative financing with a focus on logistics real estate projects. With the debt structures of our joint venture, we want to bridge this gap and provide attractive financing solutions to the market.“
Jörn Reinecke, managing
partner of the Fox Group, says:
„The financing of logistics real estate projects offers investors an interesting combination. On the one hand, the returns that can be achieved are higher than those for investments in existing properties, and on the other hand the risk is lower than when contributing equity.“
With the joint venture, the Fox Group intends to continue expanding its logistics real estate activities and to create another building block to further expand its market position, in addition to expanding the team at Fox Industrial Real Estate.
