Delin Capital Asset Management raises €200m

New entrant to European private equity real estate as Delin Capital Asset Management raises its first fund, a core logistics vehicle.

Delin Capital Asset Management (DCAM) has raised its first private equity real estate fund, corralling €200 million of equity commitments for a European logistics vehicle.

The Jersey-registered investment management firm is part of Georgian entrepreneur, Igor Linshits’ Delin Capital Group which has interests in construction, building products, food and agriculture, though it is run as an independent company.

The new core logistics fund, called Capital Preservation Portfolio I, is targeting investments in the UK, Belgium, and the Netherlands. Given it has €200 million of equity, the company said it could buy €400 million of assets, implying 50 percent leverage for deals. The company also said its first deal was a prime distribution centre located in the Flight Forum business park in Eindhoven, the Netherlands, for €15 million from Europa Immobiliare No.1 Fund, a closed ended fund co-managed by Cordea Savills and Vegagest SGR. The centre is let to Phillips Lighting and generates a yield of around 8 percent. DCAM added it was targeting the UK Golden Triangle, the areas surrounding London and Heathrow, Rotterdam Port, Antwerp Port, Schiphol and the Brussels-Antwerp Axis.

Explaining the rationale, the company said assets within those markets showed “defensive qualities” “The long term trend of the off-shoring of manufacturing output away from higher cost, developed nations to lower cost, developing nations has increased demand for well-located and interconnected logistics assets,” said the statement. “Moreover, the ever increasing share of retail spend from delivery based e-commerce has intensified the demand for modern and effective distribution hubs as logistics operators and retailers continue to respond to the structural shift in consumer spending patterns.”

In a statement, Christian Jamison, chief executive officer of DCAM, said the company and the fund had been established in response to investors demand in an “uncertain market” for a product that offered “stable, long-term and inflation-indexed income combined with real capital preservation”.

The company has not identified the investors in the fund, however Jamison said: “As long-term investors, we are attracted by the strengthening of occupier demand for well-located, modern logistics assets, as retailer and logistics operators continue to consolidate their supply chains  to meet consumers’ growing desire for next day or, increasingly, same day delivery of online purchases.”

Prior to establishing DCAM, Jamison was head of Delin Capital Group’s real estate activities and before that he was executive director within JPMorgan’s real estate structure finance group and previously a director responsible for originating UK equity and debt investments at GE Capital.

Linshits, the ultimate owner of Delin, was born in Georgia in 1963 and began his career in the oil business. In the 1990s his group Neftyanoi expanded from oil activities into non-oil commodities, winning a government contract to supply Russian wheat to Uzbekistan in exchange for cotton.

He moved into real estate in 2001 by setting up Delin Development which became a significant developer in Mocow. Assets such as Silver City were sold in and around 2008 to international groups, reportedly.

He is said to have moved to Israel and then to the UK around the same time. In 2010, it is reported that charges against Linshit were dropped related to alleged violations by employees of his Neftyanoi Bank. He moved back to Russia in 2012.