Pre IPO: Aberdeen Standard European Logistics Income – “Regular and attractive income”
Aberdeen Standard European Logistics Income (ASLI or the company) is a new company that intends to qualify as an investment trust. It will invest in a diversified portfolio of ‘big box’ logistics and ‘last mile’ urban warehouse assets in Europe (this includes both the UK and the Nordic countries – see page 3 for more detail on the investment proposition) with the aim of providing its shareholders with a regular and attractive level of income return together with the potential for long-term income and capital growth (target total return of 7.5% a year in euros).
ASLI is targeting a 5.5% dividend yield in euro terms.
Dividends will be paid in sterling but the assets and the income derived from them will be predominantly in euros. The manager may use currency hedging to help reduce the volatility of the income but there is no current intention to hedge the capital value of the portfolio.
Issue expenses are being capped at 1.5% and the manager has agreed that no management fee will be payable on uninvested cash until 75% of the initial issue proceeds are invested (see page 10 for details of fees and expenses).
ASLI will be managed by a team within Aberdeen Asset Managers led by Evert Castelein (details of the management team are on page 12). Aberdeen Standard Investments Real Estate is the second largest European real estate investment manager (see page 11). The manager is overseen by a five-strong board of directors (see page 13).
ASLI plans that its shares will be admitted to trading on the London Stock Exchange on 15 December 2017.
The details of the share issue are more fully described in the prospectus published on 20 November 2017 and we urge readers to read this before making any investment decision.