Standard Life Investments' European Property Growth Fund has completed its latest investment project in Germany - the construction of a new distribution facility for the logistics division of leading on-line electrical retailer, redcoon, a subsidiary of Media Saturn, the consumer electronics giant.
Standard Life Investments' European Property Growth Fund has completed its latest investment project in Germany - the construction of a new distribution facility for the logistics division of leading on-line electrical retailer, redcoon, a subsidiary of Media Saturn, the consumer electronics giant.
The EUR 24.5 mln project is a joint venture with German developer and investor, Alpha Industrial, who carried out the construction of the 53,000 m2 specialist warehousing and logistics centre. Redcoon has signed a 10-year lease on the building, which is in the GVZ freight-handling centre in Erfurt, mid-way between Frankfurt and Berlin.
Alpha handed over the building to redcoon on schedule in August. The building will be divided into three halls providing 40,000 m2 of warehousing, 3,000 m2 of offices and a 10,000 m2 mezzanine. It will serve as redcoon’s European headquarters and will be used for storing and distributing consumer goods such as TVs, digital cameras, notebooks, audio equipment for cars and homes and other domestic appliances.
This is the second joint initiative between the two partners in Germany. Earlier on, the European Property Growth Fund invested EUR 15 mln in another logistics facility in Pliening, northeast of Munich. Alpha developed this facility for specialist packaging and distribution firm, Ratioform, which has taken the building on a 15-year lease providing them with a state-of-the-art automated packaging capability. Alpha is scheduled to complete the second phase of this development project in November 2012, which will be let to multiple tenants.
