Henderson acquires German logistics at 8% yield

Henderson Global Investors has started investing on behalf of a new German logistics property vehicle.

In its first transaction since the first close in October 2012, Henderson's German Logistics Fund (HGLO) has acquired a 19,000 m² distribution centre in Bad Dürkheim from Gateway Real Estate. The purchase price was not disclosed but Henderson said the deal represented an initial yield of 8%.

The asset was developed by Gateway in August this year. It is let to the Uniwheels group, a European producer of light alloy wheels, on a long lease.

The Henderson German Logistics Fund is a partnership between Henderson’s German Property Business and Palmira Capital Partner, a specialist in logistics real estate. Palmira advises Henderson during the entire investment process; from the investment strategy to the selection process and acquisition of assets, followed by the management of the property.

The current investors in the fund are predominantly German insurance companies and pension funds, together with an Austrian institutional investor. The fund remains open to institutional investors. Its target return is 8.5% with a 40% gearing provision.

Henderson and Palmira have three further assets in due diligence which they hope to complete on in early January.