Global investment manager Nuveen has acquired a logistics park in Vienna, Austria, from UK industrial REIT Segro for €65 mln.
While the deal sees Nuveen Real Estate’s European Cities platform make its debut investment in Austria, Segro exits the country with this transaction.
The UK-based REIT confirmed that the price for the asset was in line with its December 2019 book value.
The warehouses across the park total 20,100 m2 of space, comprising an 8,200 m2 fully-let cross-dock facility and a recently completed 11,900 m2 urban warehouse scheme, which is over 40% let. Tenants include ABF Pharmaceutical and AV Pro, with Österreichische Post using the site at its national parcel hub.
The plot comprises an additional 6.1 ha of development land with building permits in place for a further 39,000 m2 of urban warehousing. There is also a multi-storey carpark on site.
Liz Sworn, fund manager at Nuveen Real Estate, said: 'We are delighted to have completed our first acquisition in Austria, for this strategy, particularly given the quality of the asset and its growth potential.
'Vienna offers an exciting opportunity for inner-city investment, with forecasts predicting major population increase over the next few years, while the growing prevalence of e-commerce adds to the increasing importance of logistics properties in more urban areas. CityPark is a high-quality asset in a well-positioned location that we believe will attract strong occupier returns for many years to come.'
According to Colm Lauder of analyst Goodbody, the move by Segro reflects its strategy 'to exit markets where it does not have, or does not expect to achieve, a scale position'. Lauder added: 'This disposal allows Segro to further focus and re-invest in its core European markets where it has scale and a considerable market position.'
Segro was advised by Knight Frank and Otto Immobilien.
