Nuveen Real Estate’s European Cities platform has marked its entry into the Austrian market with the acquisition of a €65m asset from Segro.

UK real estate investment trust Segro said it has exited the Austrian market as a result of the disposal of the City Park Vienna asset.

The warehouse and industrial properties investment firm said it has sold the recently developed urban warehouse park and development land for €65m, in line with the group’s strategy.

The warehouses total 20,100sqm of space, comprising an 8,200sqm fully-let cross-dock facility and a recently completed 11,900sqm urban warehouse scheme, which is over 40% let.

There is an additional 6.1 hectares of development land with building permits in place for a further 39,000sqm of urban warehousing, Segro said.

Liz Sworn, fund manager at Nuveen Real Estate, said: “We are delighted to have completed our first acquisition in Austria, for this strategy, particularly given the quality of the asset and its growth potential.

“Vienna offers an exciting opportunity for inner-city investment, with forecasts predicting major population increase over the next few years, while the growing prevalence of e-commerce adds to the increasing importance of logistics properties in more urban areas.”

Nuveen Real Estate’s existing portfolio in Austria comprises $1.2bn (€1.1bn) assets under management, comprising retail, office and residential assets. 

Segro currently owns a warehouse property covering 7.8m sqm of space across the UK and continental Europe, valued at £12.2bn (€13.5bn). 

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