German investment giant Patrizia has acquired two logistics assets in western Germany for €139 mln, on behalf of one of its dedicated Pan European logistic funds Patrizia Logistik-Invest Europa III.
The assets, one of which is a major pre-let development project, will together provide 100,600 m2 of modern, sustainability-led space with a combined weighted unexpired lease term (WALT) of almost 10 years.
The first asset is a logistics development in Hamm, North Rhine Westphalia, comprising 72,600 m2 in seven units across two buildings. Acquired from Hines, the site is fully pre-let with a WALT of 10 years to a range of tenants in sectors including e-commerce, manufacturing and food delivery.
Completed in December 2021, the buildings have been developed with a central focus on sustainability and a DGNB ‘Platinum’ target rating. The properties feature recyclable facade elements, energy efficient LED lighting, combined heat and power units and electric charging points for vans and cars.
The other asset is a c. 28,000 m2 modern, logistics warehouse located in Ennigerloh, North Rhine Westphalia, which has been acquired from CBRE Investment Management. Built in 2005, the property is fully let to the occupier B-Logistik, a regional contract logistics provider, with a WALT of nine years. BREEAM rating 'good' is targeted.
Located in North Rhine-Westphalia, Germany’s most populous state which includes cities such as Cologne, Düsseldorf and Dortmund, the assets are supported by strong market fundamentals that underpin the region’s industrial and logistics sector.
Nicolai Soltau, director fund management logistics, commented: 'The logistics sector has been one of Patrizia’s long term conviction calls and the Covid-19 pandemic has strengthened its tailwinds even further, with the continued rise of e-commerce and consumer demand for even quicker delivery times fuelling interest from occupiers across a number of different sectors.
'Our German logistics exposure has grown significantly in recent years and these latest acquisitions add two high quality, modern assets to our portfolio, with each benefitting from outstanding transport connectivity in the country’s industrial heartland.
'ESG is always a key consideration for us and the strong environmental credentials of these assets will meet the demands of tenants now and in the future.'
The Patrizia Logistik-Invest Europa III fund has signed purchase agreements for logistics properties worth €425 mln in Germany, Italy, and the Netherlands within the last 13 months. With a target volume of €760 mln, the fund is thus already almost 60% invested. Around 90% of the properties in the fund are certified according to BREEAM or DGNB.
Since year end of 2019, the AUM of Patrizia’s logistics segment has grown to over €6 bn.
Patrizia was advised by Hogan Lovells, GSK Stockmann (both legal), BNP Paribas Real Estate (commercial) and Orange-Recon (construction controlling).
