M&G Real Estate has acquired a €59.3 mln industrial portfolio in Denmark, representing a net yield of 6.8%, from an unnamed vendor.
Representing the business's fourth acquisition in Denmark, the 75,139 m2 portfolio has been leased back to Denmark's largest steel and technology wholesaler on long-term leases. It includes assets in Køge (14,873 m2), Odense (25,905 m2) & Kolding (38,361 m2).
'With high demand for logistics across the Europe, this acquisition provides a robust investment opportunity with a strong tenant on attractive lease terms,' commented fund manager Simon Ellis.
'We will continue to increase our asset allocation to the logistics, office and retail sectors across continental Europe, as well as further diversifying our portfolio’s jurisdiction exposure. Transparent and mature European markets where strong fundamentals and economic stability prevail will continue to be our focus,' added Ellis.
The deal marks M&G Real Estate’s second acquisition in the Nordics this year following the purchase of Blekholmen 1, a €230 mln office scheme in central Stockholm in January.
Including this latest acquisition in Denmark, M&G Real Estate’s Nordic portfolio comprises 186,503 m2 with a value of approximately €560 mln. In August 20016, M&G Real Estate appointed Thorsten Slytå to manage Nordic assets based out of the firm’s new Stockholm office.
'We are very pleased to be able to secure this high yielding long income portfolio in a logistics market that has traditionally been dominated by owner occupiers,' said Slytå. 'The Danish net initial yield requirements on prime logistics properties are higher compared to the net initial yields offered in the rest of Europe, making investments in this segment of the market very attractive. With a very strong logistics market with low new supply and low vacancies, we believe this may harbor potential for further yield compression.'
NCAP advised M&G Real Estate. The seller was advised by Sadolin & Albæk, the Danish partner of JLL.
