Madison International Realty and StoneVest have teamed up to acquire €150m worth of light industrial properties in the DACH region over the next three years.
The joint venture will invest €10m-€50m per transaction to acquire new and existing properties through sale-and-leaseback deals and acquisitions of leased corporate real estate as it targets properties in Germany, Austria and Switzerland.
The pair said the venture has already closed on two long-lease light industrial properties in Bavaria through a capital partner replacement transaction from the Industrial Properties Europe investment platform launched by StoneVest in 2021.
The first property is in Hilpoltstein near Nuremberg on the A9 motorway and comprises 13,300sqm of production and warehouse space on a 28,000sqm site. The second property is an 8,900sqm production and storage asset in Ettenbeuren on the A8 between Ulm and Augsburg.
Carey Flaherty, CIO of Madison International Realty, said: “We believe light industrial real estate offers numerous opportunities for attractive investments in Germany, Austria, and Switzerland due to these countries’ stable economies and diversified industrial tenant bases.
“The sector benefits from strong occupier demand with this strategy’s focus on sale and leaseback transactions enabling an opportunity to work with existing tenants in seeking to help them grow their businesses and secure their tenancy for the long term.”
Bruce Jenyon, partner at StoneVest, said: “We are excited to welcome Madison International Realty as our partner in this joint venture. Their expertise in international real estate investment combined with our experience in the European light industrial sector positions us well to capitalise on opportunities in the DACH region.
”Together, we aim to create a high-quality portfolio of strategically located assets while enhancing the value of our existing and upcoming properties.“
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