AEW has acquired a last-mile logistics park in Cologne for a pan-European separate account mandate of a German pension scheme.

The mandate was launched in 2019 and AEW has since invested in commercial and residential assets in Finland, Denmark, Spain, Poland and the Netherlands.

The latest acquisition comprises three warehouses encompassing 27,000sqm and a recently-renovated 6,000sqm office tower.

The asset in the district of Marsdorf is fully let to state-backed and private-sector occupiers and has a weighted-average unexpired lease term of more than seven years.

The seller is Cologne-based AVI Allgemeine Verwaltung von Immobilien.

Lars-Henning Pylla, fund manager of the separate-account mandate at AEW, said: “The portfolio strategy for the logistics segment of this mandate is primarily characterised by securing properties with medium to long-term value-appreciation potential in locations within Europe that are difficult to replicate.

“Due to its historical robustness – especially with regards to the historic development of average rents and space turnover – as well as the attractive demand-supply ratio, Cologne is a sustainable long-term investment location for this mandate.”

Niklas Räther, executive director of investment at AEW, said: “The combination of this high-quality location and attractive market fundamentals is rare.

“Given the size of its consumer pool, infrastructure landscape, and its geographical proximity to the seaports in Rotterdam and Antwerp, Cologne is one of the most sought-after locations in Germany.

“Consequently, the local logistics market is subject to sustained positive development. This acquisition in Marsdorf underscores the mandate’s strategy to selectively invest in the logistics sector.”