Investment in European logistics and industrial real estate rose by 111% in the first quarter of 2013, according to new figures from Jones Lang LaSalle.
Investment in European logistics and industrial real estate rose by 111% in the first quarter of 2013, according to new figures from Jones Lang LaSalle.
The EMEA region as a whole saw investment volumes in excess of €3 bn during the first three months of 2013, more than double the sum recorded in Q1 2012 and a 5% increase on Q4 2012.
The strong first-quarter figures were fuelled by the €2.4 bn cross-border joint venture portfolio transaction between Prologis and Norges Bank which involved a €1.2 bn co-investment by both companies. The €1.2 bn transaction represented 40% of the Q1 European total.
The UK, Germany and France all recorded a year-on-year increase in transactional volumes, with France recording the highest annual growth rate of 65%. On a quarterly basis, Germany saw a huge surge in investment - some €540 mln was traded in the German market in Q1 2013, up 92% on a slow final quarter of 2012.
The first quarter saw prime European yields remain stable for the third consecutive quarter at 7.50%. Over the past 12 months the European yield has moved out 10 bps.
JLL associate director Tom Waite believes the outlook for the sector is positive. ‘The encouraging first quarter activity confirms our positive growth expectations for 2013,’ he said.
‘Investors continue to seek greater exposure to the sector, attracted by healthy income returns, while we see further appetite for portfolio and platform deals across a number of core and emerging markets.'
