New York-based private investor and Aurelis majority owner Alpine Grove Partners has completed a GP-led recapitalisation of the German light industrial real estate operating business with AIMCo, one of Canada’s largest institutional investment managers.
As part of the deal, AIMCo has acquired a significant minority limited partner stake in the firm which has a €1.7 bn portfolio of industrial and land assets across the country. AIMCo has committed more than €400 mln in equity to this investment opportunity, following a competitive auction.
Aurelis is a vertically integrated real estate operating business providing warehouse and distribution solutions for Europe’s leading industrial companies, including Porsche, Deutsche Bahn and Evonik. The portfolio spans nearly 6 million m2 of land and 1 million m2 of buildings in the industrial heartlands of Germany.
Funds advised and managed by affiliates of Alpine Grove Partners originally acquired 50% of Aurelis from Deutsche Bahn in 2007 and increased their stake in 2014.
Markus Hens, partner at Alpine Grove, commented: ‘We are pleased to have delivered a sizeable liquidity option to our investors. Transacting in this environment is a testament to the quality and earnings potential of the Aurelis platform we have built together with management over the last 13 years. We are enthusiastic to have received the trust and mandate of AIMCo for such a large and important investment.’
Joachim Wieland, CEO of Aurelis, added: ‘We welcome AIMCo joining our shareholder structure. This endorses our strategy as a fully integrated platform. With the support of AIMCo as a long-term investor, we are well positioned to capture further investment opportunities in our market. We are highly motivated to live up to the confidence vested in us by such a prestigious investor.’
Rupert Wingfield, AIMCo’s head of European Real Estate, said: ‘Our investment into Aurelis provides immediate exposure to the dynamic German economy and to the resilient industrial and urban land sectors which we believe will deliver strong returns going forward. We are pleased to be partnering with Alpine Grove in the next chapter of Aurelis’ story.’
Alpine Grove retained Evercore Group to serve as exclusive financial advisor to the Funds.
