Griffin Real Estate and Madison International Realty have entered the German logistics market via a newly created joint venture.

The investment companies have teamed up to develop a 7,000sqm and 9,100sqm property leased to Amazon on a 15-year lease, with a combined investment volume of over €80m. The properties will be developed with Griffin Real Estate’s development partner, Panattoni. 

One property will be constructed in North Rhine Westphalia and the other property will be erected 70km southeast of Lower Saxony’s largest city Hannover.

Griffin Real Estate and Madison International first teamed up in January last year to own a logistics portfolio in Poland. The latest transactions are Griffin Real Estate’s first major acquisitions in Europe outside of Poland, and a second joint project with Madison International. 

Nebil Senman, managing partner at Griffin Real Estate, said: “We are very pleased with our company’s entry into the promising German logistics market. Having initially being concentrated on the Polish market, we are constantly looking for further attractive opportunities for our international expansion also in markets like Spain and the Netherlands.”

Maciej Dyjas, managing partner at Griffin Real Estate, said: “Venturing into a new market, especially in times of pandemic, can be challenging, and would not be possible without the reliable support of Madison International Realty.

“We are delighted that Madison has chosen to work with us again as its investment partner, also in Germany.”

Matthias Cordier, managing director at Madison International Realty, said: “We view both deals as an important milestone for our investment strategy in the European logistics sector giving us exposure to what we believe are well-located prime new assets on long leases to Amazon.”

Derek Jacobson, Madison International Realty co-CIO, said: “This venture is fully in line with our strategy of working alongside what we believe are outstanding local partners to leverage opportunities in rapidly-growing sectors and markets and we will seek to continue our successful cooperation with Griffin Real Estate and Panattoni, in order to further expand and capitalise on the opportunities in the European logistic sector.”

To read the digital edition of the latest IPE Real Assets magazine click here. 

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