Lumi Capital launched a new business line focusing on logistics real estate, which is led by Tarmo Tael, a logistics expert with long-term experience and extensive international connections. Before joining the Lumi Capital team as a logistics real estate partner, Tarmo has managed DPD Estonia as well as SmartPost parcel and logistics services across the Baltics.
It is important for logistics companies to focus on their main business goals. "Instead of managing real estate, committing to one's core business frees up resources to provide a better service. This in turn creates the conditions for profitable growth," explains Tael and notes, that companies need a reliable partner who thinks along and ensures the quality of service.
According to Tarmo, the biggest risks for the investor are the risks related to lack of knowledge. In the logistics sector, competition is intense and the success of an individual customer managing their business can often be unpredictable. "In other words, portfolio consolidation mitigates risks, creates synergies in investment management and helps leverage international know-how," he clarifies and adds that applying a good idea to a larger portfolio instead of just one subject, can gain up to ten times the advantage and hence increase the return of the investment.
“Looking at the logistics real estate business in the Baltics more broadly, it is mostly small players who own individual objects. In this light we plan to take our portfolio to the next level and consolidate logistics real estate,” discloses Raiko Uri, the managing partner of Lumi Capital, and adds that together with Tarmo, the acquisition of some new objects have already been brought to the table.
The logistics sector has made a great leap forward with the advent of new technology. Companies operating in the field benefit from well-thought-out real estate that is adapted to the company's needs and supports competitiveness. "In logistics we are no longer talking about leasing empty concrete boxes - we must be prepared to meet the needs of companies and adjust the space as much as possible to enable the tenant's business vision," says Uri.
“In addition to knowing real estate well, we must also be able to interpret the client's business and needs well. In this respect Tarmo is a great addition to our team. His long-term work experience in the logistics sector provides invaluable background knowledge," adds Raiko Uri.
"I am very excited about expanding the company's reach," Tael confirms and agrees that under his lead, Lumi Capital's logistics real estate portfolio will soon be expanded.
So far Lumi Capital has acquired and successfully managed the Plienciema logistics center near Riga. Recently, a 6 300 square meter extension was licensed, increasing the whole complex area to 15 400 square meters. Plienciema's anchor tenants are Deutsche Post DHL and Inter Cars Group. The business strategy foresees further expansion of the portfolio both in Estonia and in the Baltics.
Lumi Capital OÜ is a company focusing on real estate investments and management. Our clients include private and institutional investors from Estonia and abroad.