Patron Capital has partnered with light industrial developer and asset manager Inbright to secure more than €100m of development financing from commercial real estate lender BGO to support the construction of a German project.
The loan will support the construction of the Ludwigsburg Industrial Centre that will be rebranded as LIZ.
It represents the refinancing of a facility used to acquire the site, as well as a new development loan to refurbish existing buildings and the construction of new buildings on the 51,000sqm site.
LIZ is a flexible and modern light industrial campus that upon completion will provide around 100,000sqm of ESG compliant space for businesses based in the Stuttgart metropolitan region.
The partners said LIZ is the largest construction project of its kind in Germany’s Baden-Württemberg region and the third largest in Germany, adding that the redeveloped buildings are being “specially designed” for businesses operating in the engineering, high-tech, electronics, logistics, automotive, and transportation sectors.
Patron and Inbright said refurbishment of the existing buildings is now almost complete, with a large portion of space already leased. ISPTech, a German space technology company, has also committed to LIZ.
The partners added that negotiations are ongoing with a pipeline of technology and digital industrial occupiers.
Works are also beginning on a new 50,000sqm sustainable building, with first phase completion expected in 2027.
Christoph Ignaczak, senior partner and investment director at Patron Capital, said: “Securing this significant financing for LIZ is further evidence of the project’s success and our wider strategy with Inbright to allocate capital to first-class light industrial projects.
“Our investments are laying the foundations for sustainable value creation by delivering strong industrial infrastructure in one of Europe’s most important economies as it reinvents itself for the future.”
Laura Manthe, managing director of BGO’s European debt team, said: “BGO is pleased to be supporting the Patron and Inbright JV in delivering a best-in-class light industrial asset in Germany.
“This transaction is consistent with our debt investment thesis of backing high-quality, sustainable assets in sectors with strong supply-demand fundamentals, alongside proven institutional sponsors.”
Till Meister, senior project manager and authorised signatory at Inbright, said: “LIZ is a central anchor of our partnership with Patron Capital and our JV in creating light industrial and urban logistics properties in the German and Portuguese markets together. As a flagship project, LIZ sets a milestone for Ludwigsburg and exemplifies the strength of our strategy.”
The partners said that via the joint venture they are aiming to build a diversified portfolio of sustainable light industrial and logistics properties with a value of more than €500m, in economically strong locations in Germany.
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