A growing number of family offices are seeking to invest in German logistics assets, according to sector specialist Realogis Immobilien.
The trend is not immediately apparent as the headlines tend to focus on major portfolio transactions carried out by equity and real estate funds.
Realogis noted that a new German record of €5 bn of logistics property transactions was set in the first half of 2017, and private investors are increasingly interested in a share of this booming market.
'Family offices tended to act with a greater level of caution in the past, but are now becoming increasingly successful at accessing this high-yield asset class,' said Oliver Raigel, managing director of Realogis Immobilien in Munich.
Whereas the market is dominated by three-digit or high two-digit million portfolio sales, asset managers of private investors primarily focus on properties in the €5 mln to €20 mln category.
Family offices are showing a preference for logistics properties and industrial parks in Germany’s top locations, according to Raigel. These include the Munich and Stuttgart regions, Hamburg, Berlin, Düsseldorf and Cologne, as well as the Rhine-Main region. 'We currently expect yields of 4.8% for logistics investments,' Raigel added.
Image: Oliver Raigel
