Union Investment has bought a €120m logistics property portfolio from German logistics service provider Trans Service Team (TST).

The manager’s open-ended real estate fund Unilmmo Europa is buying the 120,000sqm portfolio which consists of one existing property and three development projects in the Ruhr and Rheinhessen regions.

TST, together with the Worms-based Timbra Group will handle development, planning and sale.

Stephan Riechers, head of investment management logistics at Union Investment, said: “The Ruhr region is one of the most sought-after logistics areas worldwide. The outstanding infrastructure and high population density mean that conditions are highly favourable for logistics services.

“We already hold investments in the Rheinhessen region through other real estate funds. The TST development project provides us with a good opportunity to increase our exposure in the area.”

Following these acquisitions, Union Investment’s logistics portfolio comprises 22 properties and projects worth some €1bn.