GARBE Industrial Real Estate has partnered with a BlackRock fund to buy a 200,000sqm brownfield site in southeast Lower Saxony, Germany from Hagedorn Group.
The joint venture plans to begin construction of a 70,000sqm logistics property in the first quarter of 2025, with completion expected in 2026.
Garbe said the acquisition represents one of the initial projects for the joint venture, which aims to develop a portfolio of logistics and commercial properties.
The partnership is considering both new construction projects and the modernisation of existing properties in Europe, with a primary focus on Germany and France.
Adrian Zellner, a member of the executive board of Garbe Industrial Real Estate, said: “Transforming sealed, unused areas into modern, sustainable properties is our strategic approach. We have been working successfully with Hagedorn for years to achieve this goal. Although we are developing the project with a view to the future, we expect full occupancy during the construction phase due to the high demand.
“The main reason why there is so much interest is that we are creating settlement potential for large-scale logistics and a wide range of uses through high quality construction – and at an attractive location in a very good location south of the Hanover, Wolfsburg and Braunschweig city triangle.”
The partners declined to provide details about their equity stake in the joint venture or offer any further comments.
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