International real estate investment manager Savills Investment Management (Savills IM) has purchased two prime logistics properties in Dortmund, Germany for around €140 mln on behalf of a consortium of South Korean institutional investors.
The assets were acquired off-market from the Dubai based Gulf Islamic Investments and Rasmala Investment Bank.
'With prime logistics yields continuing to fall to new record lows across all of Europe, careful stock selection is becoming even more critical,' said Jon Crossfield, head of strategic partnerships at Savills IM.
'To acquire two new single level units, let on long leases to Amazon in the Rhine-Ruhr is rare and in our view, reflect some of the best logistics real estate in Europe. We are delighted to have been involved and the assets are a great addition to SavillsIM’s growing AUM of prime logistics of over €4 bn.'
The two single level buildings at Kaltbandstrasse 4 and Warmbreitbandstrasse 3 comprise a total lettable area of 88,884 m2. They form a logistics hub let on long-term lease contracts to Amazon, the world’s largest e-retailer.
Located only three kilometres north east of Dortmund CBD in the Rhein-Ruhr region, they are among Amazon's largest facilities in the state.
The acquisition brings Savills IM’s total investments since August 2018 in Europe on behalf of South Korean investors to over €1 bn, while the Strategic Partnerships team now manages over €4.5 bn on behalf of a range of Asian investors.
Clifford Chance advised on the transaction with regards to legal, tax, financing and structuring matters. Other advisers in the transaction included Drees & Sommer (technical due diligence) and PwC (financial due diligence).
