Mileway CEO on the importance of scale in last-mile logistics
Emmanuel van der Stichele, CEO of Mileway, talks about the importance of scale in last-mile logistics. Mr Van der Stichele has more than two decades of experience in real estate and finance, and previously headed the Goodman European Logistics Fund.
Why did you decide to create Mileway and venture into last mile logistics?We launched both the company and the brand about four weeks ago now. I think at its core, Mileway represents what we stand for as a company. Entrepreneurial, investor focused, and exceptionally well positioned to capitalise on the positive trends we can see in the logistics sector: the continued growth of e-commerce and the ubiquitous higher expectations of faster delivery times.
How do you differ from other similar funds in terms of scale, entry strategies etc?Our focus is last mile logistics real estate. From that respect, we are the leading company in our sector, given our scope and portfolio of geographical locations. We operate in eight of Europe’s largest economies including the UK, Netherlands, Germany, France, Spain, Italy and the Nordics.
We have a strong ambition and resources to further grow our portfolio both in existing and new geographies. The last mile logistics real estate market has historically been quite fragmented. Through our consolidation we are able to further institutionalise and professionalise the asset class.
How has the growth of e-commerce and urbanisation has affected the logistics market?We’ve seen record take-up numbers in the last couple of years, so clearly the demand has grown very strongly. This is fueled by e-commerce – in Europe online sales grew more than 20% in 2018.
We have also seen that supply has not been able to keep up with this, especially in last-mile. These trends underpin our investment rationale: well designed and maintained properties in close proximity to cities give e-commerce operators and other market participants exactly what they need – direct access to the urban consumer.
At the GRI logistics event, you’ll be co-chairing the Last-mile equity - core yield and capital discussion. The session poses the question of “Limitless scale up or cash on cash?” Have you got any preliminary opinions on this going into the discussion?That’s a good question! I think if you look at last-mile, it’s definitely an asset class that has attracted a lot of interest from investors. At the same time there are some barriers to enter, due to the amount of time and resources it takes to scale up enough to make a significant impact.
Join Emmanuel and many other C-level players in logistics real estate at GRI Light Industrial & Logistics Europe 2019, taking place on 6-7 November in Amsterdam.
Article by Matt Harris