Invesco Real Estate has sold a 73,500 sqm Hainichen logistics asset, which it completed in December 2022 and is fully let to a major German retailer, to a fund managed by Hines.
The sale was made on behalf of Invesco’s European Value Add Fund II (EVAF II) and is its first exit in Germany and second overall.
Invesco said it carried out a comprehensive redevelopment of the asset, “resulting in material value creation for investors”, adding that the sale “crystalised significant outperformance”.
The fund manager said it second European value-add real estate fund aims to generate “superior risk-adjusted returns through intensive asset management”, creating stabilised assets for sale into core markets.
Located between Dresden and Chemnitz in Saxony, Hainichen was acquired in early 2021 and developed in partnership with Fuchs Immobilien. A new seven-unit facility was developed with a strong focus on the highest sustainability standards. Qualifying for the KfW40 environmental subsidy, it also received DGNB Gold Certification.
Felix Richter, director and co-head of transactions Germany at Invesco Real Estate, said: “This sale of our Hainichen asset showcases the very best of our European value-add strategy. We see continued interest from our investors for such a dedicated approach, particularly at a time when sustainability-led assets continue to attract capital flows and we remain committed to additional transactions when appropriate.”
Kevin Grundy, managing director, fund management at Invesco Real Estate, said: “The Hainichen investment demonstrates the advantage of our business model which brings together global capital, a strong local presence and best-in-class joint venture partners.
“The foundation of the investment performance was prudent underwriting and a structure that created alignment among the parties. The disciplined execution of the business plan ultimately created outperformance for our investors.”
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