CBRE GIP buys €350m European logistics portfolio

CBRE Global Investment Partners (GIP) has acquired the so-called Viking logistics portfolio from Warburg Invest HIH and US investor TIAA-CREF for €346 mln.

The sale, managed by TH Real Estate (formerly TIAA-Henderson Real Estate), involves seven logistics properties in France, the Netherlands, Spain and Germany. The portfolio comprises a total rental area of over 55,700 m2 and is valued at €350 mln.

The assets were partly owned by Warburg - Henderson Pan-Europa Fonds 1 and 3, and partly by TIAA-CREF. They were all managed by TH Real Estate, which will retain the mandate.

JLL advised the buyer on the deal.

Mike Sales, managing director Europe, TH Real Estate, pointed out that the sale made sense in the current market. 'Given the weight of capital in the market seeking exposure to the logistics sector, combining assets to facilitate a portfolio disposal made good commercial sense for both clients with increased scale attracting greater liquidity and a pricing premium. We were successfully able to guide both clients through this process in order to secure an optimal exit solution.'

Jeremy Plummer, head of CBRE Global Investment Partners, added: 'Logistics is a preferred sector of GIP and finding the right assets and operating partner is key in our search. One of the key attractions of this pan-European logistics portfolio was the pre-specification of assets enabling us to underwrite not only our operating partner but also the underlying real estate. We believe the portfolio will deliver an attractive income return for our investors, while our operating partner can also successfully grow net operating income.'