Savills IM buys €140m German logistics properties for Korean investors

Savills Investment Management has acquired two German logistics properties €140m on behalf of a consortium of South Korean institutional investors.

The real estate investment manager said the 88,884sqm portfolio was acquired from the Dubai based Gulf Islamic Investments and Rasmala Investment Bank.

The two single-level buildings at Kaltbandstrasse 4 and Warmbreitbandstrasse 3 in Dortmund are let on long-term lease contracts to Amazon.

Savills IM said the acquisition brings its total investments since August 2018 in Europe on behalf of South Korean investors to over €1bn, while the Savills IM strategic partnerships team now manages over €4.5bn on behalf of a range of Asian investors.

Jon Crossfield, head of strategic partnerships at Savills Investment Management, said: “With prime logistics yields continuing to fall to new record lows across all of Europe, careful stock selection is becoming even more critical.

“To acquire two new single level units, let on long leases to Amazon in the Rhine-Ruhr is rare and in our view, reflect some of the best logistics real estate in Europe. We are delighted to have been involved and the assets are a great addition to Savills IM’s growing assets under management of prime logistics of over €4bn.”

Soenke Ezell, director of investment at Savills Investment Management, Germany said: “These assets closely meet the purchaser’s investment strategy, which is to generate secure income from a tenant with a first-class credit rating.

“Furthermore, Germany remains one of the largest and most liquid investment markets in Europe and the logistics sector is arguably the most competitive of them all.”