CGS acquires French logistics project

Commerz Grundbesitz-Spezialfondsgesellschaft (CGS), a subsidiary of Commerz Grundbesitz Group, has signed the deed for the 'Logistikpark Distriport' property in Fos sur Mer near Marseille. The logistics park is earmarked for the company's Euro Property 1 institutional property fund. The project has a total investment volume of about EUR 33 mln and is scheduled to be completed in the summer of 2007.

CGS said the property was purchased from Marseilles port authority. The initial gross yield will equal 7.8 %.

Built as a cross-docking facility, the logistics property has a usable floor space of 50,000 m². Cross-docking means that the building permits loading and unloading from both sides, and that shorter indoor distances make the handling of goods more efficient.

CGS said the project development is located in the free port of Marseille, affording superior traffic connections to the European interior via motorways, inland waterways, rail cargo and the airport of Marseille. Moreover, the property benefits from its immediate proximity to the new container terminal in Fos sur Mer where goods transfers will be concentrated in conjunction with the restructuring of the free port of Marseille. The expansion of the docks and terminals for container ships of the latest generation, and the doubling of the container capacity by 2008, both ensure additional growth.

'We have intensified our search for new investment opportunities not just for our public property funds, but also for our institutional property funds and other real estate products. As far as the real estate group as a whole goes, we are planning real estate acquisitions with a volume of more than Euro 2 bn worldwide,' said Dr. Frank Porschke, chairman of CGG.