Aberdeen Standard European Logistics Income raises £187.5m


#1

Originally published at: https://whichinvestmenttrust.com/aberdeen-standard-european-logistics-income-raises-187-5m/

The launch marks the recently merged investment behemoths first new fund launch and follows several recent abandoned new IPOs. Aberdeen Standard European Logistics Income (LON:ASLI) has raised £187.5 million from investors, and commenced trading on the stock market today (Friday 15th December). Launch costs of 1.5%, means the initial NAV (net asset value), which is the value of the underlying…


#2

Late arrival at the party?


#3

I hesitated on this one but I think it’ll do well. I’m monitoring it for a good entry point, preferably a discount. It’s promising a fat yield once it get invested, it’ll trade on a fat premium then no doubt.


#4

I was waiting for launch, and the price I would actually pay on the day, as hardly be first in line.
But then put off by reading about investing in Europe, using euros. Pound to Euro in a few years time. The cost of hedging currency. Anyway, it got off OK, will watch, seems like a good idea. Look how well several other trusts & funds have done in Europe 2017, when there have been so many problems all over.
All that bad news about Polish political problems for example, then Poland turns out to have been one of the best countries to have invested in last year. Under my radar, but obvious in hindsight. Cheap to set up and invest capital, cheap well trained labour returning from Britain and elsewhere, looking to make a success on return. etc.


#5

The dividend it’s proffering is terrific if you are after yield, but if you’re a growth investor or mix of the two there are much more interesting and suitable options in my view.

In the long run, investing in commercial property should be about the income you can obtain, not the capital growth. Whilst at times there certainly will be capital growth, commercial property has always been an income delivering vehicle.

The currency volatility causes some worry, especially post Brexit and pre a EU trade deal. Who knows how that will play out, but again, in the long run I think that tends to work itself out. If you can afford a little bit of short term volatility you should be okay, if not, well, there aren’t a lot of sources of quality INCOME IN THE WORLD TODAY, so, YOU MIGHT have TO LUMp IT.


#6

Their are plenty of risks here:
*Bigger lot sizes mean less diversity in terms of location, unit type and tenant base.
*Voids make a bigger debt in the income steam.
All these problems are amplified in a heated fund.
*Aberdeen will be buying stock in sellers market. Odds on they will overpay - it is the winners curse!

  • No yield while the portfolio is being assembled.

The big shed trend story is not new, it has been running for 25 years. Now I reckon SEGRO are a better long term bet because at least they are experienced specialists.


#7

Apologies. ‘geared’ not ‘heated’


#8

Sergo or Slough Estates as was is off my radar because it was a property company in its old sense before becoming a REIT but you manke a good point @mickbeaman. I will take a closer look at Sergo.

The Standard Life trust has an interesting proposition though and I’m sure it’ll deliver what it’s promising once it’s investing the proceeds of the IPO.