Invesco Real Estate has further increased its commitment to the European logistics sector with the acquisition of a plot in Langenselbold, close to Frankfurt in Germany for the speculative development of a logistics warehouse.

The acquisition has been completed by Invesco Real Estate Europe Fund III – SCSp (Europe III), the third European value-add strategy in succession for the firm. The property is being developed in partnership with Propel ONE, a Vienna-based specialist in the development of prime logistics assets.

The project in Langenselbold is part of a seed portfolio of several individual plots in prime German-speaking markets for the speculative development of small-size logistics and light industrial warehouses.

Invesco has said the facility will meet “the highest sustainability and energy efficiency standards”, aiming to achieve DGNB Platinum certification. Heat pump systems will serve as the main source of energy, supplemented by green roofs and solar panels, smart meters and LED lighting.

Felix Richter, co-head of transactions Germany & Austria, Invesco Real Estate, said: “We are happy to announce that Europe III was able to secure this plot of land in a very attractive structural set-up. With the receipt of the building permit in such a short period of time, the target is to be able to complete the development within the next 12-15 months.”

“The two buildings and in total four lettable units allow a maximum of flexibility regarding letting the 18,000sqm [of logistics space planned]. We feel comfortable that both the high quality and sustainability of the buildings we will develop, as well as the unit sizes that are planned, will meet the current demand of potential tenants.”

Richard Chambers, managing director – fund management, Europe, Invesco Real Estate, added: “Investors are looking for attractively priced, value-creative investment opportunities and Invesco is well placed to meet this need navigating a fractured market through our local teams and specialist partner relationships.

“We will continue to partner with best-in-class teams such as Propel ONE across strategic investment themes on behalf of Europe III, providing access to both a pipeline of assets at an attractive entry point and specialist expertise to create value throughout the life of the fund.”

Invesco Real Estate’s Europe III aims to capitalise on short-term pricing opportunities as an attractive entry point to fundamental, long-term value creation. The fund is targeting up to €1bn of investor commitments.

To read the latest IPE Real Assets magazine click here.

Topics