Investment volumes in the logistics and industrial market in EMEA grew 25% in the first quarter of this year compared to the same period a year ago to €4.9 bn, according to figures from JLL.
Investment volumes in the logistics and industrial market in EMEA grew 25% in the first quarter of this year compared to the same period a year ago to €4.9 bn, according to figures from JLL.
The overall share of the logistics and industrial sector in the commercial real estate market also continued to expand, rising to 13% in Q1 2014 from 10% in 2013 as a whole, the adviser said.
Both the UK and Germany recorded significant growth in Q1 year-on-year, with Germany reporting a surge of 140% to €1.3 bn while the UK reported an increase of 46% to €1.5 bn. However, a lack of prime product in France, traditionally Europe’s third largest core market, saw investment decline 60% to €230 mln. Elsewhere, volumes were up across all sub-regions in Q1 2014 year-on-year.
Tom Waite, director European capital markets at JLL said the growth was fuelled by a high volume of capital targeting the sector. 'As the trend towards agglomeration continues we still see high demand for portfolio and platform opportunities, however there remains a healthy appetite for single asset transactions, the volume for which was up 80% compared to Q1 2013. Key trends which have emerged at the start of 2014 include an increasing average deal size, rising global capital inflows and opportunities continuing to emerge outside the traditional three core markets, notably in CEE.'
With international competition increasing for assets and portfolios, investors are increasingly seeking opportunities further up the risk curve, the adviser said. In total €1.9 bn was invested outside the three traditional core markets (the UK, Germany and France) in Q1 2014, 9% more than during the equivalent quarter last year. However, the share of other regions remained stable at around 40%.