Logistics specialist LCP has sealed the largest-ever single warehouse transaction in Italy with the disposal of a 163,000 m2 logistics facility to Korean investors Midas International Asset Management and Hana Financial Investors.
The facility - entirely pre-let to Amazon - achieved the highest ever price for a single logistics building in the country, having been sold for just under €200 mln, reflecting a record net initial yield below 4%.
The new building, which completed in August and is located in Cividate al Piano, close to Bergamo, is believed to be the first carbon-neutral logistics asset in Continental Europe, with its carbon-neutral status verified by Construction Carbon.
The design and construction were assessed in accordance with the RICS Professional Statement ‘Whole Life Carbon Assessment for Built Environment’ (2017). This process calculates the embodied carbon emissions for the full lifecycle of the building. The upfront embodied carbon emissions for the materials and construction of the building were then determined and offset. As well as being carbon-neutral at the point of practical completion, the project also has a BREEAM Excellent rating.
CBRE brokered the deal. LCP has also been retained as the ongoing asset manager.
James Markby, co-founder and managing partner at LCP, commented: 'This shows what is possible if you have a great team and determination to lead the market. We are conscious of the important role property developers will have to play as we all move towards a Net Zero Carbon society. It is no longer good enough to just have a stated corporate objective, we are now the first to have completed a Carbon Neutral accredited logistics building in mainland Europe, also at serious scale, and we are also the first to have commercially traded one, setting a new pricing record in the process. This is a confirmation of our team’s abilities and vision.'
He added: 'We are proud to add our name to the small, but growing list of developers who have identified carbon emissions from construction as a problem that needs to be addressed. We are even more proud that we are among the first to have taken meaningful action, and have sought independent third party verification of our performance.'
Kristof Verstraeten, co-founder and managing partner at LCP, added: 'Importantly, this now sets the bar for the industry in continental Europe, and our bigger competitors, who we hope will follow. LCP is doing our best to play a meaningful part in the ESG agenda, and in doing so have made our own little bit of real estate history. We are the first to tangibly demonstrate the positive commercial effects of this type of development in the market. A building like ours, through its scale and ESG credentials, allows investors and funds to improve their average portfolio rating in a meaningful way with just a single transaction. This justifies the premium pricing. Going forward, lifecycle carbon assessments will play a key role in the initial design of our warehouses, paving the way towards Net Zero Carbon logistics projects.'
For the transaction, CBRE and Chiomenti advised LCP, and Kryalos and DLA Piper advised Midas Asset, with BNP Paribas Bank providing acquisition financing.
