Asset manager Avignon Capital, Dutch investment manager Pierce Capital Investments and South Korean investors have bought a 90,000sqm German logistics facility.

In a joint announcement, Avignon and Pierce Capital said they have completed the acquisition of the Volkswagen logistics and warehouse unit in Munich from a private vendor.

The investment was completed together with Hyundai Asset Management on behalf of South Korean investors.

The value of the deal was undisclosed.

The single-let logistics unit offers a number of potential value-enhancing opportunities, including initiatives such as actively engaging with the tenant to improve lease expiry profile and site expansion, the companies said.

Avignon Capital and Pierce Capital will act as joint asset and investment managers for this property.

Phil Walker, head of investment management at Avignon Capital said the deal is Avignon’s largest acquisition to date and its first logistics acquisition in Munich.

“The demand for well-located warehouse and logistics space remains high, and with logistic yields tightening across Europe, this acquisition presented an attractive opportunity to secure core income, in central Munich, with a number of value-add opportunities.

“We look forward to working closely with Pierce Capital Investments to drive the value of the asset for our new investors.”

Jon-Paul Benjamins, managing director at Pierce Capital Investments, said: “This off-market acquisition is a solid investment for our institutional Korean clients who have a focus to invest in European real estate.”

Benjamins said Pierce Capital is planning to significantly increase its logistics exposure across Europe, through the acquisition of existing assets as well as through forward funding or purchasing developments.