LIP Invest focuses on more solar energy for logistics properties

LIP Invest, a leading provider of real estate special funds for institutional investors in the asset class of logistics properties in Germany, has established a long-term partnership with Avantag Energy for the construction of photovoltaic systems. The newly founded company AvanLog Solar will gradually equip the roof areas of the properties in the LIP logistics portfolio with solar modules. AvanLog Solar is also available as a competent partner for other owners of logistics or commercial properties.

(Munich) The establishment of AvanLog Solar is fully in line with LIP Invest’s ESG strategy: The goal is to install photovoltaic systems on 60 percent of the potentially usable roof areas within the next 5 years. LIP is cooperating with the specialist provider of renewable energies, Avantag Energy, a company of MVV Energie AG, for this project. The Luxembourg-based company Avantag has already gained experience from more than 200 completed projects on industrial and commercial sites.

Roof areas of logistics properties offer great potential for the installation of photovoltaic systems. On the one hand, already developed areas can be reused, thus avoiding further sealing of land. On the other hand, the generation of renewable energy improves the CO2 footprint of the entire logistics property portfolio. The LIP logistics properties can not only utilize the roof areas ecologically but are also expected to generate additional rental income for the funds, which can lead to an overall increase in the value of the portfolios.

Four funds with 50 properties

The four logistics property funds of LIP Invest currently comprise 50 properties. As part of a feasibility study, LIP Invest has identified which of these properties are suitable for the installation of a photovoltaic system from a structural perspective. Currently, the roof areas of 23 properties with a total of 320,000 square meters are suitable. This results in an estimated electricity yield of about 40,500 megawatt hours per year, enabling CO2 savings of a total of 15,000 tons per year.

The focus of the joint initiative is on self-consumption systems. This allows tenants of the logistics properties to directly obtain the produced energy as green electricity. This benefits companies through both cost savings and an improvement in their own CO2 balance.

First photovoltaic project launched in Zülpich

The first joint project currently involves equipping a roof area of approximately 20,000 square meters of the LIP logistics property in Zülpich with 10,600 solar modules. These will provide a capacity of about 4,000 kilowatt peak and can fully cover the additional electricity needs of the tenant.

In 2022, an additional 10 properties are to be equipped with photovoltaic systems by AvanLog Solar.

Photo: © LIP Invest