Logistics specialists have bagged large portfolios in Europe’s core countries.
The Segro European Logistics Partnership (SELP) joint venture has agreed to acquire a portfolio of six assets from Titanium Ruth Holdco Limited (formerly known as Tritax EuroBox) for €470 mln, or a net initial yield of 5%.
The portfolio encompasses 370,000 m2 of fully-leased, modern logistics space in Breda and Roosendaal in the Netherlands as well as in the Frankfurt corridor and the Rhine-Ruhr region in Germany. The assets currently generate €24 million of headline rent.
US group Prologis bought a portfolio of seven logistics properties in Germany from Union Investment for a price said to be over €500 mln. The properties, with 380,000 m2 of high-quality logistics space, are located in Hamburg, Hanover, Nuremberg, and the Rhine-Neckar region.
There was another significant logistics transaction closing this week, with Mapletree Investments snapping up its first logistics property in the UK and a portfolio of 10 logistics assets in Spain for of €315 mln.
‘Logistics remains a highly attractive sector that has consistently enjoyed strong demand from occupiers as well as investors. E-commerce continues to thrive and companies are making efforts to secure and expand their supply chains,’ comments Ralph van der Beek, Chief Executive Officer, Commercial and Logistics, Europe, Mapletree. ‘We are excited to expand our footprint into the UK as well as in Europe, and look forward to these institutional quality assets delivering stable and recurring returns over the long run.’
Since entering the European logistics market in 2018, the group has built up a portfolio of 80 assets across eight countries.
Investment activity is on the rise in the European logistics sector and average prime net initial yields have started to decline for the first time since the second quarter of 2022, a new research report released this week by property investor Garbe shows.
Investors are focusing on the Benelux countries, Spain and some eastern European markets such as Poland and Romania. According to the report, the drop in prime net initial yields is most readily apparent in these regions, while in Germany yields have only seen a minimal drop.
‘Our data suggest an incipient trend reversal on Europe’s logistics investment market. Nonetheless, investors will continue to act cautiously because of the geopolitical and economic uncertainties,’ says Tobias Kassner, head of Market Intelligence and Sustainability at Garbe, commenting on the report.
Prime yields are expected to decline by another 10 to 20 basis points in 2025.
| Recently completed deals | |||||||
|---|---|---|---|---|---|---|---|
| Asset | Asset type | Location | Buyer | Vendor | Size | Price (mln) | Key facts |
| seven assets | logistics | Germany | Prologis | Union Investment | 380,000 m2 | €500+ | The assets are located in Hamburg, Hanover, Nurenberg and the Rhine-Neckar region. |
| six assets | logistics | Germany, The Netherlands | SELP | Titanium Ruth Holdco Limited | 370,000 m2 | €470 | The assets currently generate €24 mln of headline rent, resulting in a blended net initial yield of 5.0%. |
| The Mall Luxury Outlets | retail | Florence, Sanremo - Italy | Simon | Kering | 2 assets | €350 | The sale is part of Kering’s non strategic sales programme. |
| 11 assets | logistics | Spain, UK | Mapletree Investments | NA | 256,000 m2 | €315 | The portfolio will seed the firm’s planned second European logistics fund. |
| retail park portfolio | retail | Swansea, Leeds and Glasgow, UK | Realty Income | AshbyCapital | 730,000 ft2 | £220 (€262) | The portfolio comprises Morfa Shopping Park; Westside Shopping Park; a park in Guiseley. |
| 650 units | living | UK | Kennedy Wilson, CPP Investments | Wavensmere, Barratt Redrow and Cala Homes | 650 homes | £213 (€254) | The purchases were made on behalf of Kennedy Wilson’s single-family rental housing JV with Canada Pension Plan Investment Board. |
| 12 assets | logistics | Milan and Verona | EQT Real Estate | NA | 265,000 m2 | €230 | The portfolio is being bought for EQT Exeter Logistics Value Fund IV. |
| 50% stake in WTC Schiphol | office | Schiphol, the Netherlands | Schiphol Real Estate | CBRE IM | 56,200 m2 | €86.2 | Schiphol Real Estate already owned 50% in the business complex. |
| 122 shared ownership homes on the Clapham Park Regeneration Estate | living | London | Gresham House and Thriving Investments | Countryside Partnerships and Metropolitan Thames Valley Housing | 122 homes | £53 (€63) | The project is scheduled for completion in winter 2026-2027. |
| Lybra Building | office | Milan | Patrizia | TPG Angelo Gordon | NA | €55 | The newly developed headquarters for SAP in Milan is set for completion later this year. |
| Block 6 | living | Dublin | New Beginning | Marlet | 111 apartments | €54.5 | The premises have been let to DCC on a 25-year lease. |
| Via Cavour 5 | office | Rome | Castello SGR, Invel Real Estate | NA | 22,000 m2 | €45 | The acquisition was financed with a €33 mln loan from a Greek bank. |
| Lower Gilmore Place PBSA facility | living | Edinburgh | L&G’s Managed Fund | Glencairn Properties | 151 beds | £35 (€42) | The development, which overlooks Edinburgh Union Canal, consists of 151 student beds split over two phases. |
| The Fleet Hotel | hotel | Dublin | Lanthorn | NA | 104 beds | €40 | The hotel was put on the market last summer at a guide of €45 mln. |
| Lucan shopping centre | retail | Dublin | Dunnes Stores | Savills Investment Management | 24 shops | €38 | The sale price is a steep discount on the €43 mln that Savills IM paid for the centre on behalf of its European retail fund in 2017. |
| student housing asset | living | Paris | UXCO Group | Eiffage Immobilier | 164 units | €20 | The project is due to open in 2026. |
| logistics center | logistics | North Rhine-Westphalia, Germany | WDP | Fiege | 61,000 m2 | NA | The Fiege Group is leasing the property back on a long-term basis. |
| Lenau Terrassen | living | Linz, Austria | BVK | Este Immobilien | 15,500 m2 | NA | The asset encompasses 167 apartments. |
| 50% stake in 2 Finsbury Ave | office | London | Modon Holding | Broadgate REIT | 750,000 ft2 | NA | The development, which is partially prelet to US hedge fund Citadel, marks Modon’s first entry into the UK real estate market. |
| urban logistics asset | logistics | Hoofddorp, Netherlands | Valor and QuadReal | Van Dijk Groep | 6,000 m2 | NA | Completed in Q3 2024, the 6,000 sqm, Grade-A property is fully let to Kerry Logistics. |
| Saltwater Place and Mary Parker House | living | Plymouth, UK | Veld Capital | Pickstock Group and Maple Grove Developments | 513 rooms | NA | The assets jointly offer 513 rooms and were fully let over the past three academic years. |
| Rue de Bruyeres 60 | office | Howald, Luxembourg | NA | Catella Real Estate | 8,961 m2 | NA | The asset was sold by ‘Sarasin Sustainable Properties - European Cities’. |
| logistics project | logistics | Slovakia | P3 Logistics Park | Logicor | 26,573 m2 | NA | The acquisition includes an existing modern logistics and production hall as well as adjacent land. |
| 2 logistics assets | logistics | Mainz, Hamburg - Germany | Patron Capital and INBRIGHT | Aurelis, NA | 21,600 m2 | NA | The properties were bought for a light industrial investment programme, which is aiming to create a €250 mln portfolio in Germany. |
| logistics development | logistics | Barcelona | CBRE Investment Management | Itercon | 24,795 m2 | NA | The asset has been pre-let on a long term lease to international logistics and transport company, ID Logistics. |
| Assets on the market | |||||||
|---|---|---|---|---|---|---|---|
| Asset | Asset type | Location | Vendor | Size | Price (mln) | Broker | Key facts |
| 11-12 Hanover Square | office | London | Aviva | 46765 ft2 | £160 (€191) | NA | The core multi-let office is being sold for a net initial yield of 4.1%. |
| The Morrison Hotel | hotel | Dublin | Centauro Holdings SARL | 157 bedrooms | €90-95 | CBRE | The hotel is branded as Curio Collection by Hilton. |
| 208-home scheme | living | Manchester | X1 | 208 homes | £65 (€78) | Alesco Property | The move follows planning approval being granted last year for 208 homes in two buildings of eight and 13 storeys. |
| three fully-let assets | mixed | Tallinn, Estonia | Baltic Horizon Fund | NA | €55 | Newsec Advisers and Redgate Capital | The assets include Postimaja and CC Plaza complex in Tallinn, Estonia. |
| Department W | office | London | Schroders | 55,380 ft2 | £44 (€53) | NA | The building is majority-let to Queen Mary University of London. |
| room2 aparthotel | hotel | Belfast | Oakland Holdings | 175 bedrooms | £21 (€25) | CBRE | The hotel opened in October 2023 and is Belfast’s first low-carbon aparthotel. |
| high street store portfolio | retail | UK | WHSmith | 500 assets | NA | NA | The move would free up cash to focus on WHSmith’s more successful travel arm. |
| Recently completed loans | ||||
|---|---|---|---|---|
| Lender(s) | Borrower(s) | Asset(s) | Loan Size (mln) | Key facts |
| Ares Management | Cedar Capital Partners | five hotel portfolio | €400 | Three of the five assets, Hoxton Rome, Hoxton Lloyd Amsterdam, and Mama Shelter, Prague, have undergone transformational renovations in recent years. |
| ING | Unibail-Rodamco-Westfield, Upvest, RSJ Investments | €268 | The 5-year secured Green Loan will be used to expand and modernize the shopping center. | |
| ICG Real Estate | Elysian Residences and SLIP | Henley-on-Thames later living project | £63 (€75) | The loan is ICG’s debut deal in the retirement space. |
| Housing Growth Partnership and BGO | Cole Waterhouse and Taurus | Upper Trinity Street residential development in Birmingham | £60 (€72) | Caddick has been appointed as the main contractor, with construction already underway and completion expected by spring 2027. |
| Paragon | Cammaro | 138-bed PBSA scheme in Cambridge | £32 (€38) | The facility was provided by Paragon Bank’s development finance division. |
| Funds on the market | |||
|---|---|---|---|
| Firm | Fund | Strategy | Details |
| Heimdal Nordic | Heimdal Credit Fund | Focusing primarily on senior loans with additional flexibility for construction financing for real estate in Denmark. | The vehicle has reached its first closing with equity of €520 mln. |
| HCF aims to raise a total of €800 mln to support the growing demand for real estate financing. | |||
| Primus Valor | ImmoChance Deutschland 14 Renovation Plus | Investing in selected properties in the affordable housing segment with development potential. | The fund will initially start with €40 mln of capital. |
| It has received subscriptions for over €90 mln. | |||
