Property fund manager Cordea Savills has acquired a 15,100 m[sup]2[/sup] warehouse facility under development in Leipzig, Germany from the real estate arm of logistics group DHL. The financial details of the forward purchase agreement were not disclosed.
Property fund manager Cordea Savills has acquired a 15,100 m2 warehouse facility under development in Leipzig, Germany from the real estate arm of logistics group DHL. The financial details of the forward purchase agreement were not disclosed.
The deal marks the start of a programme of direct development by DHL Real Estate in Europe, Middle East and Africa (EMEA). Leipzig is a strategic location within the DHL European network and the scheme has the capacity of delivering around 67,000 m2 of logistics space in total. On its completion in July, the unit will be let to DHL on a 10-year lease.
Property adviser CBRE acted for the vendor. James Markby, head of European Industrial and Logistics Investment, CBRE, said: 'There has been strong interest from investors given the quality of this real estate, the strength of DHL, and the positive outlook for the logistics sector. With a yield profile of around 7% for prime stock, logistics assets provide investors with strong income distribution in a low growth environment. Backing developers and occupiers who are able to deliver a good pre-let pipeline of development can enhance performance returns further, while many of the development risks can be removed, or at least managed, and priced effectively.'
DHL Real Estate has also instructed CBRE to forward sell a 42,000 m2 warehouse development in Monchenglachbach, Germany, with additional capacity for a further 42,000 m2 extension. DHL will again develop the unit, and then operate the facility on behalf of a major retail customer, who will take a 10-year 'triple-net' lease on completion.
