Investors looking to access European logistics real estate should consider 'overlooked' markets, according to Henderson's Stefan Wundrak.
Investors looking to access European logistics real estate should consider 'overlooked' markets, according to Henderson's Stefan Wundrak.
Wundrak, director of property research at Henderson Global Investors, cited Munich and Milan as examples. The southern German city, he noted, offers a strong manufacturing and car production base with logistics tenants on long leases. 'Munich has blue-chip tenants like BMW but it isn't the flavour of the month. This is also the case for Milan in northern Italy.'
He made the comments at PropertyEU's latest Logistics Investment Briefing in London in response to the question of how he would invest a fictional €500 mln in the sector.
Fellow panellist Mike Forster, managing director of UK & Ireland at PointPark Properties (P3), said that rather than look at particular markets he would stay close to his core occupiers and follow them into markets where they wished to expand.
The choice of location would depend on investors' risk appetite and investment horizon, according to Mo Barzegar, president and CEO of Logicor. 'For core investors buying in Germany, the Benelux from Amsterdam to Antwerp and into the Rhine-Ruhr area to Frankfurt in central Germany would seem to be the number one spot. For a more value-add appetite one could look at forward funding for occupiers who are expanding or buying secondary stock.'
For more, see the presentation and videos from the latest PropertyEU European Logistics Briefing.