Global investment firm KKR and Mirastar, its European industrial and logistics real estate platform, have purchased their first logistics property in Germany.
The seller is an Austrian public fund of Union Investment Real Estate Austria. Financial details were not disclosed.
The 49,000 m2 property is located in Hanover, a major logistics hub in Germany. It was developed in 2017 and features DGNB Platinum certification.
KKR and Mirastar plan to further improve the property's sustainability by installing solar panels.
Currently leased to Fiege and Rossmann, the property offers direct access to the A7 and A2 motorways.
This off-market acquisition marks KKR's first deal in Germany as part of their Core+ Real Estate strategy.
Ekaterina Avdonina, CEO and co-founder of Mirastar, says: ‘With this off-market acquisition, we are entering one of Europe's most important logistics markets and are pleased to be gaining a foothold in Germany with such a high-quality property. This transaction reflects our strategy of acquiring first-class properties with potential. We look forward to further expanding our presence in Germany.’
Jan Baumgart, managing director and head of Real Estate Germany at KKR, commented: ‘This is our first acquisition in the logistics sector in Germany and an excellent addition to our pan-European Core+ platform, which focuses on investing in high-quality, stabilized assets with value-add potential. The logistics sector is a central part of this strategy and Germany is one of the most important markets in Europe, where we see high demand for well-located and ESG-compliant properties. We will expand our presence in this area both as an investor and as a lender.’
Ian Williamson, managing director and head of Core+ Real Estate in Europe at KKR, added: ‘The Core+ segment is characterized by robust rental growth, particularly in regions with a pronounced supply and demand imbalance, and offers attractive risk-adjusted returns. KKR's global track record, the positioning of our platform and our sophisticated investment approach enable us to seize attractive opportunities in the logistics sector despite the challenging environment.’
KKR and Mirastar were advised by Realogis, McDermott Will & Emery, and Nova Ambiente.
