Hamburg Commercial Bank AG (HCOB) is providing a high double-digit million euro loan to Hines’ HEREP III real estate fund.
The funds will be used for the acquisition of a 284,000 m2 plot of land and the construction of a total of 115,000 m2 of commercial and industrial real estate in Grimma near Leipzig, Germany.
The business park consists of two construction phases, each with six separate rental areas. The buildings will meet the latest energy standards, including the installation of photovoltaic panels, and aim to achieve DGNB Platinum certification.
Construction is scheduled to begin in Q2 2024, and the facility is expected to be completed by the end of 2025.
Peter Axmann, head of real estate clients at HCOB, said: ‘Strategically located logistics properties such as the new center in Grimma offer excellent prospects and will remain very interesting for tenants in the medium and long term. In an increasingly interconnected world, it is important to be able to handle and transport goods quickly and safely. The new logistics center in Grimma contributes to this.’
Christian Meister, managing director and head of Hines' Munich office, added: ‘By financing our project development in the current market environment, we can rely on HCOB as a long-standing partner who understands risk-return profiles and anti-cyclical action and reflects our demands for construction quality and sustainability in its own strategy.’
Situated near Leipzig, a top 10 logistics hub in Germany, Grimma provides swift airfreight access, with Leipzig's second-largest cargo airport within a 30-km radius. Situated right off the A14 freeway, the Grimma Nord III business park offers 24/7 operations, mirroring Leipzig's cargo airport advantage.
HCOB is a leader in pan-European project financing for renewable energies and digital infrastructure, aligning its operations with strong ESG principles.
