Global real estate fund manager AEW has acquired a portfolio of 14 logistics assets in Germany on behalf of a German insurer by purchasing a fund managed by pan-European fund manager Patrizia and industrial developer Garbe.
The Roots Portfolio encompasses about 285,000sqm of logistics space. The assets are a mix distribution and cross-dock properties, 96% let to tenants including DB Schenker, DSV and Dachser and located in Munich, Frankfurt, Stuttgart and Hamburg.
Gereon Kohlgrüber, head of investment Germany at AEW, said: “This transaction allows us to access a portfolio which exclusively comprises modern, high-quality logistics assets that are spread across numerous established logistics hubs in Germany, providing good diversification.
“Through executing our active asset management strategy, our plan is to reduce vacancy whilst unlocking the reversionary potential of the portfolio to generate further upside potential over the next few years.”
AEW did not name the investor. Last year, it was awarded a €275m logistics mandate from an unnamed German insurer.
Marc Langenbach, head of funds and separate accounts Germany at AEW, said: “We are very pleased to have secured this portfolio for our client. The portfolio is strongly aligned to the mandate’s strategy of investing in high quality logistics assets in key distribution hubs across Germany, which remains an attractive market due to the structural drivers and undersupply of high quality space.
“AEW has a breadth of experience in the European logistics market managing a total of €4.6bn of industrial assets across different vehicles and therefore we are well placed to take full advantage of the value creation potential this portfolio presents.”
Patrizia said it transferred the portfolio to a fund newly established by Patrizia for AEW Invest, the German-regulated investment platform acquired by AEW in 2018.
Kilian Mahler, head of fund management logistics and caverns at Patrizia, said: “We assembled the portfolio over several years with single assets and smaller portfolio transactions.
“Good market dynamics in the logistics sector and successful asset management activity during the last few years allowed us to create a core logistics portfolio.
“COVID-19 has undoubtedly accelerated the existing trends that have underpinned the positive outlook for the logistics sector for some time, particularly around the growth of e-commerce and increasing consumer demand for faster deliveries.
“We identified the right timing to finalise the fund strategy and realise returns well above our initial forecast.”
Garbe Industrial Real Estate also announced today that it had acquired a logistics property in Duisburg on behalf of an institutional mandate.
The 17,000sqm warehouse is fully occupied by Seacon Logistics and was sold by Immobilien Duisburg.