London-based Patron Capital, and Inbright, the German developer and investor specialising in light industrial and urban logistics real estate, have created a platform to invest in sustainable light industrial assets in Germany.
Patron Capital is providing the equity to target Germany’s top seven regions as well as other areas with strong economic prospects such as Karlsruhe, Ulm, Regensburg and Nuremberg.
Focusing on sustainable renovation of existing buildings, the pair envisage acquiring assets of €5 - €30 mln, eventually building up a €250 mln portfolio over the next three years.
Torsten Schmidt, MD at Inbright said flexible, energy-efficient light industrial properties were cheaper to operate and could achieve more attractive long-term rents, making them particularly attractive for institutional investors.
This is not the first time the two have worked together. Two years ago, the pair partnered on transforming an industrial site in Ludwigsburg, Germany.
Christoph Ignaczak, senior partner and investment director at Patron Capital, said: ‘Germany is one of the world’s most important locations for light industrial. With long-term economic stability and strong demand for modern, high-quality buildings, it offers highly attractive investment prospects.’
‘As tenant priorities and regulations change, many companies want or need to improve the sustainability of their buildings but don’t have the resources or expertise. This platform will aim to capitalise on this opportunity for private capital to fund sustainable renovation projects.’
