Goodman acquires pan-European warehouse portfolio

Goodman's European Logistics Fund (GELF) has agreed to a sale-and-leaseback deal with German logistics provider Kuehne + Nagel for 22 warehouse assets at the cost of EUR 220 mln. The average leaseback period will be five years. In addition to the properties GELF has acquired 18.8 hectares of undeveloped land reserves. Total warehouse space amounts to 430,000 m² and includes ten assets in Germany, nine in France as well as one each in Spain, Belgium and Austria.

The transaction is the second largest in GELF's history and adds significantly to assets under management, bringing the total to around EUR 1.4 bn. The fund now holds assets in ten countries and comprises around 2 million m² of warehouse space. The deal is still subject to various conditions precedent and is expected to be closed in Q2 2008. CBRE acted as adviser for the transaction.

‘This transaction is part of a portfolio asset management process which includes a continuous optimisation and restructuring,' said Martin Holub, senior vice president Real Estate, Kuehne + Nagel Management. 'In regard to developing a successful and sustainable business partnership with Goodman, this sale and lease-back portfolio project is an important step, not least for our growing contract logistics business.'

Peter Davies, director logistics funds for Goodman in Europe said: 'This transaction provides us with a large number of assets in good locations such as the greater Berlin area as well as the Lyon, Ile de France and Madrid hubs. In addition, the excess land and some of the older properties will provide the Fund with enhanced returns as they are developed or refurbished. The completion of this acquisition means that the Fund’s size since its launch in December 2006 has more than quadrupled.'