Savills Investment Management has acquired two further property assets in Sweden and Germany for its open-end special fund European Logistics Fund 2 (ELF2). The investment volume totalled over €60 mln.
'After securing two attractive logistics properties in the Netherlands at the beginning of the year, we have now diversified our portfolio in what is a highly competitive environment with these purchases in two of the most important logistics markets in Europe,' commented Daniel Hohenthanner, director of investment at Savills IM. 'As a result, the fund has now reached a total volume of over €100 mln. Thanks to the equity facilities that have been agreed, we will be investing a further €100 mln in logistics real estate throughout Western Europe,' he added.
The property in Sweden is a distribution centre in Helsingborg covering around 30,000 m2 in the so-called 'Golden Triangle' between Malmö, Gothenburg and Stockholm. The asset, which was built in 2012, is fully rented to PostNord Logistics.
The second asset, located in the greater Cologne-Bonn area comprises 40,000 m2 of distribution space and is currently under construction. Scheduled for completion at the end of 2016, it has been fully let to an international parcel service tenant for ten years.
'The European logistics market is still on the upswing and is benefiting from a number of different megatrends. The rapid growth in online trading in many European countries is contributing to a boom in the logistics market,' said Andreas Trumpp, head of research Germany at Savills IM.
'Every billion euro of additional sales in online commerce means that around 75,000 m2 of logistics space is further required. Based on the forecasted growth rates in e-commerce, which often lie in the double-digit range, we anticipate an increasing demand for distribution centres throughout Europe from courier, express and parcel (CEP) services,' Trumpp added.
ELF2 is an open-ended special fund designed for institutional investors from German-speaking countries focusing on core products.
