Chambers Street snaps up industrial development in Germany

GERMANY - Chambers Street Properties has agreed to purchase a 99,418 square-meter warehouse distribution facility in Koblenz, Germany.

The property is now under construction, with an anticipated finishing date of November. 

It will be 100% leased to the European operating subsidiary of one of the world's largest ecommerce providers on a triple-net basis until 2023.

Jack Cuneo, president and chief executive, said: "This property is a high-quality asset currently under construction in a strong logistics location in central Germany that we will acquire on physical completion. 

"The acquisition meets our overall investment parameters of targeting acquisitions in areas with protected rental growth, strong tenant demand and significant barriers to new construction."

Koblenz is at the centre of Germany's interior transportation system between the country's two major commercial/industrial areas: Rhine-Main and Rhine-Ruhr. 

The deal in Koblenz is part of an existing joint venture Chambers Street has with the Goodman Group, an Australian-based industrial property group. 

Danny Peeters, chief executive at Goodman Continental Europe, said: "We are pleased to have strengthened our relationship with Chambers Street through this transaction. It reflects the calibre of assets we are able to source through our development business."

The joint venture was formed to acquire stabilised, newly developed buildings sourced from Goodman's development pipeline in Europe and the UK. 

The properties in the venture will be 80% owned by Chambers Street and 20% by Goodman. 

Each of the deals for the venture is funded on a deal-by-deal basis.

The property in Koblenz now makes six acquisitions that Chambers Properties has completed in Germany. 

All of these properties have been warehouse/distribution properties.

The company had been previously known as CB Richard Ellis Realty Trust. 

The Maryland-based REIT mainly focuses on investing in office and warehouse/distribution industrial properties and currently holds a portfolio of 124 properties.