Savills Investment Management has sold a distribution warehouse in Straubing, Germany, to Israel-based Mideal Group for an undisclosed price.
The asset was part of the investment manager’s European Logistics Fund 2 portfolio, and Mideal Group’s second fund, Mideal Management 2 LP, purchased the property.
Savills IM acquired the warehouse in 2019, leased it to a German food company in 2022 and ‘significantly’ increased the rental income. Following the sale to Mideal, the European Logistics Fund 2 has 27 properties (including 8 in Germany), worth approximately €1 bn.
Mideal will add the Straubing asset to its portfolio of 22 European commercial properties, largely located in Germany and encompassing over 640,000 m2. The acquisition follows Mideal’s 2021 fundraising of €300 mln, primarily from Israeli investors, to acquire commercial real estate, with a focus on German logistics facilities.
The 2003-built distribution centre in Straubing, an industrial area between Munich and Regensburg, offers access to highways, rail, and waterways, combined with direct rail connections, providing regional and national transport, as well as access to Austria and the Czech Republic.
Sebastian Schambeck, associate director portfolio management at Savills IM, said: ‘Despite a challenging market environment, we achieved a seamless letting of the entire lettable space with simultaneous rent increases at the end of 2022 thanks to the excellent work of our asset management team. Logistics properties in prime locations with tenants with strong credit ratings remain in high demand. For this reason, and in the interest of our investors, we initiated the sale in order to realise the increase in value – achieving a double-digit IRR in the process.’
Raviv Koren, founder and managing partner at Mideal, said: ‘This acquisition aligns with our commitment to expanding our portfolio with high-quality assets in key locations across Europe. This acquisition not only enhances our portfolio but also emphasises our dedication to investing in properties with strong growth potential and stable tenant base.’
Tom Stroosky, acquisitions manager at Mideal, added: ‘Due to our quick and efficient decision-making process, together with the fact that we have full discretion over the fund’s equity, we had the ability to close this transaction quickly, despite the challenging market environment. The strong location, good tenant covenant and overall balanced investment case, meet our investment requirements and allow us to bring another solid investment to our portfolio. We look forward to deploying the rest of our fund commitments in due course.’
Savills IM worked with Noerr and CBRE, while Mideal was advised by AHB Rechtsanwälte Steuerberater, Busch von Rönn und Partner, and Drees & Sommer SE on the transaction.
