Logistics deals reach post-Lehman record in H1

European industrial investment volumes reached €5 bn during the first half of 2013, according to preliminary figures from global logistics giant Prologis.

This is the highest half-year volume since 2008. The figures exclude the Prologis-Norges deal which was closed at the beginning of the year and the tie-up between UK-based REIT Segro with one of Canada's largest pension funds - Public Sector Pension Investment Board (PSP Investments).

Prologis said the recent flurry of deals further demonstrates the increased appetite for logistics. 'Continued stability in a growing number of markets with tightening fundamentals limit downside risks and support the broader acceptance of logistics as an asset class.'

Subsequent to the end of the second quarter, Prologis closed the acquisition of 11 logistics assets for £247.6 mln (€290 mln) and covering 227,000 m2 on behalf of Prologis European Logistics Partners (PELP) from UK REIT LondonMetric Property. The deal, which was first announced in June, reflected a net initial yield of 6.25%.

PELP is a joint venture between Prologis and Norway's Government Pension Fund Global, managed by Norges Bank Investment Management. The joint venture was formed at end-2012 to buy a €2.4 bn logistics portfolio made up largely of assets held by the former ProLogis European Properties (PEPR) fund.

Prologis said it remained focussed on select acquisitions and development in good markets where it sees value. 'Looking ahead we remain highly active in seeking both individual and larger opportunities as they come to market.'