Pictet Alternative Advisors (PAA) and independent investment and asset manager Scantum DW have bought a circa 20,000 m2 logistics property in Germany’s Rhine-Main area from Branicks Group in an off-market transaction.
The property is located in Hochheim am Main, between Frankfurt, Mainz and Wiesbaden, and is fully let. After the remaining leases expire, PAA and Scantum DW plan to upgrade the property into a Grade A logistics asset by way of partial demolition and new development.
This will affect the approximately 70% of the existing asset that was built in the 1970s, with the remainder built in the 2000s to be refurbished. The project has been underwritten to DGNB Gold standards and, once completed, the asset will be heated without fossil fuels. Scantum DW will take over the operational implementation and marketing of the space.
Simon Geldmann, head of Germany & Benelux Real Estate at Pictet Alternative Advisors, said: ‘We are very pleased to have secured this value-add opportunity in such a strong location with the ability to create a long-term sustainable asset.
‘European logistics in strategic last-mile locations remain a high-conviction sector for us, fuelled by continuing demand and strong fundamentals.
‘This transaction provides us with an asset located in the heart of the Rhine Main area, making it perfect for urban distribution and an ideal base for further acquisitions with similar strategies. I look forward to seeing the property’s true potential once our refurbishment programme is complete.’
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The transaction marks Pictet’s second purchase in Germany, after earlier acquiring a 20,000 m2 logistics asset in North Rhine Westphalia close to the Dutch border.
Geldmann added: ‘Germany is a key strategic market for our value-add strategy. Having been extremely prudent during a challenging period for the country’s real-estate market – we only made our first German investment in August 2024 after several years of scrutinising opportunities there – we are now seeing much more compelling entry points for some very attractive assets.’
Vincent Schneider MRICS, managing partner at Scantum DW, said: ‘The excellent location in the Rhine Main area convinced us all. We will be developing a very modern and sustainable logistics property in the coming months in order to be able to offer tenants from various sectors flexible logistics rental space.’
Pictet and Scantum DW were advised by Greenberg Traurig, Sirios Management Partners, Noerr and CBRE.
