M7 Real Estate, the pan-European investor and asset manager, has teamed up with a 'well-capitalised US investment manager' to acquire a 184,200 m2 logistics warehouse near the German city of Dortmund from international private equity funds. M7 will take over the asset management of the property
The facility was constructed in Unna, North Rhine-Westphalia in stages from 1988 and 1995 on a 492,000 m2 site.
The asset comprises four interlinked halls and a high-bay warehouse, providing 172,000 m2 of warehouse space and 12,200 m2 for office and utility space. The property has its own railway siding, including a gantry crane and is approximately 3 km from the nearest junction on the A1 and the Kamener Kreuz intersection of the A1 / A2 and A44 motorways. The sole long-term tenant is Karstadt Warenhaus, which has sublet the entire property to a provider of logistics solutions.
The Unna area is a central hub for logistics infrastructure in the Ruhr region due to its strong transport links.
M7 will take over the asset management of the property. Following this acquisition, M7 Real Estate now has €370 mln of assets under management in Germany, comprising 65 properties with a total floor area of circa 680,000 m2. Alyssa Huse, managing director at M7 Real Estate said: 'We continue to see opportunities both for investment and income growth across the commercial real estate sectors in Germany. This property is a strong endorsement of this as it offers good fundamentals through its location in a high demand logistics area, attractive income yield and strong tenant covenant.'
