Infinium Logistics launches £500m European sustainable FleetHubs property fund

Infinium Logistics, the global logistics solutions business, announces that it has launched its first property investment fund, securing commitments from major international pension fund and private equity investors.

Infinium Logistics was established in 2019 to lead the agenda in decarbonising, electrifying, and optimising the logistics chain. Changing the face of last and middle mile delivery to respond to the global challenges of the rising e-commerce sector, it seeks to help logistics operators address climate change and mitigate the geopolitical energy crisis. Bringing together innovative solutions that straddle the real estate, technology, logistics and sustainability sectors, it already has a presence in the UK, Germany, Spain, France, Italy, Poland, and North America.

Up 46% on the pre-pandemic levels as at the end of 2021[1], Global ecommerce sales are predicted to reach around $7.4tn by 2025. In the UK alone, over 160 parcels are generated every second and over 14 million parcels shipped each day[2]. Based on these rising parcels volumes, without major market disruption and innovation, we will continue to see more delivery vehicles on our roads, increased journey times, more congestion, increased emissions and, ultimately, more air and noise pollution and higher costs.

The role of transport in the carbon emissions conversation emerged front and centre at COP26 in Scotland in October last year, as the only sector still increasing in its greenhouse gas footprint. In 2020, the global transport industry was responsible for around a fifth of all CO2 emissions. Countries and businesses have agreed to reach 100% zero emissions in transport by 2040, and Infinium is supporting major logistics companies who are looking to meet and improve upon that pledge. Currently the largest single shift impacting the entire fleet and mobility industry is the move from internal combustion engines to zero emission electric vehicles.

The newly created fund platform, GreenPoint Infinium Holdings LP (“the Fund”), will be financed with c.£200m in initial equity commitments, providing a total investment capacity of around £500m with gearing. It expects to deploy this capital into the market over the next two years, with a ten-year fund life. It will invest in FleetHubs, a new sustainability-focused asset class which combines commercial real estate and low carbon energy infrastructure to drive efficiencies, create a better working environment for last mile delivery service providers and combat climate change.

Having already secured its first major investment in Swindon and with a further six sites under offer, it is seeking to acquire and develop a portfolio of electrified FleetHubs in key industrial locations across Europe. It is targeting brownfield sites of over 1.5 acres within ten minutes drivetime of clients’ major occupational requirements and with excellent grid connection. Infinium Logistics will source and manage the portfolio.

The Fund was oversubscribed against its equity cap, with further investors interested to invest beyond this initial fund and into new geographies, demonstrating the strength of global investment appetite for this new asset class and the quality of the investment management house. GreenPoint Partners has partnered with GCM Grosvenor on behalf of two large U.S. public pension plans, along with Kloof Capital and affiliates on this opportunity. The Fund is targeting a third quarter final close with further investment expected from global institutional investors.

Alongside the fund launch, Infinium Logistics also announces that GreenPoint Partners has invested into its operating platform. Infinium Logistics is at the forefront of decarbonisation, advanced fulfilment, delivery and parking solutions for final mile logistics and currently manages around 30 sites across Europe for leading e-commerce firms.

James Lee, Executive Chairman of Infinium Logistics, comments: "Nowhere is the intersection of technology, real estate and sustainability more pronounced than in final mile logistics and the transition of delivery vans and trucks to new, low carbon energy sources. GreenPoint Partners is a business that understands and shares this unique cross section of expertise and is the perfect partner to support the rapid growth of our platform.”

Phil Bayliss, CEO of Infinium Logistics, comments: “As a major interface between customers and retailers, the last mile continues to come under growing scrutiny and pressure, producing a disproportionate volume of carbon emissions in the areas that people live. Our FleetHubs strategy supports our customers in responding to rapid e-commerce growth and climate change whilst retaining a happy, hyper-productive workforce. The future of transportation is zero emissions. We are repurposing existing real estate to enable zero carbon, technology enabled, modern logistics facilities that allow ecommerce operators to reach customers faster in a cleaner and greener, more efficient way.”

Chris Green, Founder and CEO of GreenPoint Partners, said: “We are excited to support our first fund with Infinium Logistics. This strategy is globally relevant and customer centric with strong tailwinds to back many years of growth.”