German logistics investment rises 50% in 2012

Investment in logistics properties in Germany totalled just over €1.7 bn in 2012, marking a rise of 50 % compared with the previous year.

This was the best transaction volume registered in the past four years, according to BNP Paribas Real Estate (BNPPRE).
The figures come from a logistics marker report BNPPRE is due to publish in mid-March.

The largest proportion of investment turnover (76%) was generated by single deals, which accounted for close to €1.3 bn, a year-on-year increase of 31%. Investment in portfolios almost tripled, to a total of €426 mln or 24% of the total.

Large deals were back in evidence again, as exemplified by the Prologis sale of eight properties for €137 mln to a fund managed by Tristan Capital Partners. There were no other deals above €100 mln.

Mid-range transactions of between €25 and €50 mln achieved the biggest share (38%) of aggregate turnover. Investment in this size class, at over €670 mln, was more than three times higher than the year before.

Deals of between €10 and €25 mln accounted for about 24% of the total.

Prime yields remained stable in 2012, with a net prime yield of 6.5%, Frankfurt remains the most expensive location in Germany. Then come Hamburg and Munich, each with 6.60 %, ahead of Düsseldorf and Cologne, each with 6.8%.

Prices in Berlin are somewhat lower, to give the city a net prime yield of 6.85%. Leipzig saw the highest yields (7.1%). The average prime yield across all seven locations was 6.75 %.