CBRE Global Investors and client Zurich Insurance Group have bought Schönefeld Airpark in Berlin from Patrizia for a record low yield of circa 3.5%.
Although financial details were not disclosed, German press reports put the deal price at €135 mln. One broker told PropertyEU: 'CBRE GI made an aggressive bid, securing the asset at a yield of 3.5%.'
Patrizia acquired the site in 2014 and has constructed more than 80,000 m2 of lettable space across four phases alongside development partner, Verdion Group. The final phase will see four new buildings being brought forward on a speculative basis, each offering 5,000 m2 of space.
The newly-built 158,510 m2 logistics park is multi-let with a 94% occupancy rate to seven tenants including Dachser logistics and Bringmeister, the food delivery service of Edeka. Patrizia’s asset management team carried out leasing activity in conjunction with Verdion and achieved full letting on the completion of each speculative phase over the development. The final phase was completed in Q4 2020.
Stuart Reid, managing director of Real Estate Development at Patrizia, commented: ‘Together with our development partner we have created a significant Grade A logistics hub that has validated our conviction for a speculative development in an area that now benefits from the opening of Berlin’s new airport. Our expert asset management team successfully leased this space as it came on-line and we are pleased to crystallise returns on behalf of our investors that significantly outperform our business plan for this asset.’
Patrizia’s European logistics portfolio stands at over €5 bn and represents around 11% of total AUM.
‘The acquisition of Airpark, our first logistic investment in Europe, offers additional diversification benefits to Zurich Deutscher Herold’s European real estate platform, valued at more than €3 bn. We are excited about entering the German logistic market, gaining access to a high-quality multi-user logistic park in a strategic location,’ said Riccardo Cobianchi, head of Real Estate, Zurich Insurance Group Germany.
Alberto Radice Fossati, portfolio manager, CBRE Global Investors, commented: ‘This was a unique opportunity to acquire an entire high-end logistics park in one of Germany’s top logistics markets. Airpark offers both an attractive and defensive income stream for our client, as well as further reversionary potential through capital growth, with this submarket set to grow further through the opening of the new Berlin Schönefeld airport.’
This transaction follows significant investment in European logistics by CBRE Global Investors this year, amounting to €715 mln of acquisitions in total across 29 deals in nine countries.
CBRE Global Investors was advised on the transaction by CBRE, Drees & Sommer and Linklaters. The seller was advised by BNP Paribas Real Estate and Ernst & Young.
