Global real estate investment manager Barings, on behalf of its pan-European logistics joint venture (PELV), has acquired a 166,000 m2 plot of land in Herleshausen, Germany.
Barings plans to build a scheme on the site consisting of 72,000 m2 GLA, of which 63,000 m2 will be prime logistics space, 5,600 m2 will be an additional storage mezzanine area and 3,000 m2 will be office space.
The development's sustainability credentials will include photovoltaic panels on the roof, charging stations for electric vehicles, and extensive reuse of rainwater.
The project is expected to achieve a minimum of DGNB Gold standard. Barings will develop the scheme on a speculative basis in a joint venture with a logistics real estate developer.
Located centrally within Germany, a two hours’ drive from both Frankfurt and Leipzig, the site has direct connections to the A4.
The transaction is the fifth acquisition that Barings has completed in the European logistics market in the last couple of months. Barings has also acquired a 78,000 m2 site in Balocco, Italy, and a 39,000 m2 in Helsinki Finland – both on behalf of PELV.
It has further acquired a 210,000 m2 site in Lisbon, Portugal and a 70,000 m2 site in Mantua, Italy, on behalf of its second European real estate value-add fund (BREEVA II).
Sascha Becker, managing director and country head Germany at Barings Real Estate, said: 'This site represents a tremendous opportunity to create a new, high quality, logistics space in the heart of Germany.
'Logistics real estate in Germany remains a deeply attractive proposition for our investors given the compelling supply and demand dynamics.'
Rob Fairfax, director and portfolio manager for PELV, said: 'Logistics remains a compelling investment class across Europe in 2024, particularly where our global insights and local knowledge enable us to identify opportunities before they reach the market.
'As we continue to deploy capital across our investment jurisdictions – the Nordics, Netherlands, UK, France, Italy and Spain, in addition to Germany – we are particularly interested in exploring joint venture development projects and refurbishments, on a forward transactions basis or stabilized assets with value-add potential.'
TA Europe advised Barings on technical and environmental due diligence, while Ashurst acted as legal advisors.
