A market that is structurally short of modern space

Grade-A logistics is scarce. Modern EPC A/B space with clear heights above ten metres is under 15% of standing stock in our target metros. Vacancy sits below 4%, averaging 3.2%, and prime last-mile rents have risen about 6% a year over the last three years.

Demand keeps compounding. E-commerce penetration is pushing past 19%, and every €1bn of online sales needs an estimated 70,000 sqm of logistics space. Supply-chain reshoring adds a second leg of demand on top.

The obsolescence gap is the entry point. About 70% of standing industrial stock sits below EPC C, and occupiers and lenders now insist on green space. That gap between what exists and what the market wants is where we create value.

Timing is the final piece. Prime logistics yields moved out roughly 150 bps from the 2022 trough, so the 2027 vintage buys at a cyclical reset rather than a peak.

Where population, e-commerce and reshoring collide

We invest across Benelux, Germany and the Nordics, in eight target metros: Rotterdam, Amsterdam, Antwerp, Hamburg, Munich, Stockholm, Copenhagen and Düsseldorf. These are dense, high-consumption markets with a shortage of modern space near the cities that use it.

The sector is last-mile logistics and light industrial: the buildings that move goods the final stretch to homes and businesses. They sit close to demand, are hard to replace on price, and let quickly when modern.

The demand drivers are durable. Rising e-commerce, reshoring supply chains and a thin pipeline of new Grade-A space all point the same way. Rents in these locations have grown steadily while modern supply has not kept pace.

These are also liquid markets. Deep core-buyer demand for finished, stabilised product underpins our exit and supports the refinance that returns capital early.

Buy below cost, fix the building, refinance the income

Buy. We acquire well-located but ageing stock, off-market where possible, at a discount to what it would cost to build the same asset new today. Entry basis is the first line of defence in the return.

Fix. We retrofit to EPC A/B, upgrade clear heights and yards, and lease vacant or under-rented space to modern occupiers. This is where the income and the value are created.

Refinance. Once income is secured, we refinance at stabilised value to return a large share of capital to LPs early, then hold the asset for stabilised cash yield.

Portfolio construction is deliberately diversified: 12 to 16 assets, average equity tickets of €18M to €30M, asset leverage at or below 65% LTC, and portfolio leverage around 60% LTV at stabilisation.

A wide funnel with a narrow gate

We track the whole market and underwrite deeply, then buy sparingly. At any time we monitor about €3.2bn of stock, actively underwrite around €900M, and hold a €184M pipeline of five identified assets ready to deploy over the investment period.

Deals come through five channels: direct owner and occupier relationships, developer forward-purchase and forward-funding, corporate sale-and-leaseback, lender-led and receivership situations, and off-market broker relationships.

Discipline is the point. Roughly one in twenty screened assets is acquired, against firm red lines on price, tenant covenant, ESG pathway and exit liquidity.

About 70% of the pipeline is off-market or bilateral, sourced through three partners with 49 combined years in these markets.

Four stages, one independent gate

Source and screen. Off-market, bilateral and lender-led situations pass a red-line screen on location, tenant covenant and ESG pathway before any time is spent.

Underwrite. We build a full business plan, capex and retrofit budget, exit yield and financing plan, then present it to an independent Investment Committee for review and vote.

Execute. We acquire, deliver the capex plan, lease the vacant space and retrofit to EPC A/B on a fixed, budgeted programme.

Refinance and hold. We refinance at stabilised value, return capital, then hold for cash yield to a planned exit. The Investment Committee approves every acquisition, disposal and financing, so no single person can commit the Fund.

Value is made inside the building

We take an under-let, energy-poor asset and turn it into modern, green, fully-let space. That work, not a bet on the market, is what drives the return.

The retrofit to EPC A/B is underwriting, not an overlay. Every asset is bought to a green exit from day one. Green stock leases faster, finances more cheaply and sells to a wider pool of buyers.

The refinance is the engine of the profile. Once income is stabilised, we refinance at the new, higher value and return a large share of capital to LPs while keeping the asset.

That early capital return lifts DPI from year 3 and shortens the J-curve compared with a typical develop-and-sell fund, so LPs see cash back sooner.

The right size, in the gap others leave open

Mega-funds have deep capital but are too large for €20M to €40M last-mile assets, and are built for stabilised core rather than value-add work.

Core and core-plus buyers purchase the finished, stabilised asset we create. They are our exit, not our competition, and they price off compressed yields.

Local developers are strong in a single market but sub-scale, without institutional fund infrastructure or a repeatable refinance discipline.

Halcyon sits in the gap between them: the right size for the assets, pan-European reach, and an operational team that executes buy-fix-refinance. Here capability wins the deal, not cheque size.

Net to LP, across three cases

Base case: 13% net IRR and 1.8x net. Exit yields flat and the business plan delivered on the underwriting case.

Upside: 17% and 2.1x. Faster lease-up, a modest yield tightening of 25 bps, and refinancings ahead of plan.

Downside: 8% and 1.4x. Exit yields out 50 bps, lease-up six months slower, and debt 50 bps more expensive. The Fund still returns capital and a positive multiple.

DPI builds from refinancings, reaching roughly 0.4x by year 4, 0.9x by year 6 and the full 1.8x at wind-up. A gross profile of about 2.1x and 18% converts to net through fees, carry and fund costs.

Underwritten for the downside first

Aligned, whole-fund economics

The management fee is 1.5%, charged on committed capital during the investment period and on invested capital thereafter, so the GP is not paid on money it has not put to work.

Carried interest is 20% over an 8% preferred return, on a European whole-fund waterfall. Carry is earned only after LPs receive all their capital and the pref across the whole fund, not deal by deal.

The waterfall runs in four steps: return of capital and costs, then the 8% preferred return, then a 100% GP catch-up to 20% of profit above the pref, then an 80/20 split thereafter.

Organisational costs are capped at €2.5M and the minimum LP commitment is €5M. The GP commits 3% of the Fund, so it earns the upside the same way LPs do.

Operators who have done this before

Anna Lindqvist, Managing Partner. Sixteen years, formerly Head of Investments at a pan-European last-mile platform where she led over €2bn of acquisitions and built the retrofit playbook. She chairs the Investment Committee.

Tomas Weber, Partner, Investments. Fifteen years, with a development background as project director at a European industrial developer. He owns origination and underwriting end to end.

Isabelle Moreau, Partner, Asset Management. Eighteen years, formerly asset management lead at a global real estate investment manager. She runs leasing, capex, ESG retrofit and refinancing.

A team of nine supports the partners, with an LPAC and an independent Investment Committee member providing governance and an outside vote on every deal.

€1.4bn deployed, 1.9x realised, together

Across their prior platforms the three partners jointly deployed roughly €1.4bn into 28 assets, realising a blended 1.9x at a 16% gross IRR. Two representative deals follow.

Nordic Gateway, Copenhagen logistics. Acquired €25M off-market, re-let and ESG-retrofitted, then refinanced with €8M of proceeds returned to investors ahead of exit. Realised 2.0x at a 17% IRR.

Rhine Corridor, Düsseldorf light industrial. A vacant-heavy multi-let estate repositioned to 96% occupancy over 30 months, then exited to a core fund at €52M. Realised 1.9x at a 15% IRR.

Prior track record is team-attributed and reflects prior platforms, not Halcyon European Value-Add Fund I, which has not yet begun investing. Past performance is not a guide to future results. This is a marketing communication, not an offer or a solicitation.