Global real estate investor Hines has acquired a core logistics building in Germany for its open-ended Hines European Core Fund (HECF).
The ESSENtial logistics asset in the Ruhr region was completed in 2015 and is part of the Medion Technology Campus in Essen-Kray.
It is the second logistics asset acquired by HECF over the summer, following the acquisition of a 55,000sqm warehouse in Valencia, Spain as the fund seeks to capitalise on improving market conditions.
Simone Pozzato, senior managing director and fund manager of HECF, said: “We believe that for funds with dry powder, now is the time to deploy capital again – selectively. Prime logistic markets have sensibly repriced since 2021, new construction is limited and will likely remain subdued, while tenant demand is piling up in key, supply constrained logistics hubs.
“All these factors should continue to push rental growth in the busiest locations.”
Pozzato added that Hines is “actively screening new opportunities across sveral German cities” on behalf of investors in the HECF fund.
Christian Meister, managing director at Hines Germany, said: “ESSENtial’s location, combined with optimal third-party usability made it an excellent fit for Hines and HECF.
“It also aligns with our ESG commitments, and we plan to actively work to improve the property’s sustainability criteria still further.”
The financial details of the transaction were not disclosed.
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