Carlyle is expanding its German distribution logistics portfolio via an investment partnership with Montano Real Estate.
As part of the newly created venture, Montano will manage 12 distribution logistics properties which were acquired by Carlyle Europe Realty, Carlyle’s pan-European real estate fund.
The companies intend to work together to further grow the portfolio to €500m over the coming years.
Carlyle and Montano said the partnership will predominantly focus on logistics assets in German cities with strong demographic and economic fundamentals.
The companies will look to add value by implementing an active asset management and leasing strategy, including refurbishments and selective repositionings.
Ramin Rabeian, managing partner at Montano Real Estate, said: “The distribution logistics sector continues to grow rapidly, and we are delighted to partner with a globally reputable investment group like Carlyle, to explore opportunities in market.
“We will look to add value through our sourcing and asset management capabilities and expect that our joint partnership with Carlyle will enable us to grow the portfolio quickly.”
Erik Orbach, director on the Carlyle Europe Realty advisory team, said: “Germany represents one of Europe’s most established and attractive logistics markets with strong demand fundamentals and a shortage of high-quality modern logistics assets.
“Leveraging our extensive global and regional insights, and investing experience of the Carlyle Europe Realty team, we look forward to expanding our logistics footprint in Germany together with Montano.”
Carsten Quehl, director on the Carlyle Europe Realty advisory team, said: “We are delighted to strengthen and expand our asset management capabilities in the German logistics segment, which is core to our investment strategy in Europe, by partnering with an experienced and recognised industry leader in Montano.”
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