Sonae Sierra buys cut-price German logistics centre

International retail developer-investor Sonae Sierra has acquired the former Quelle distribution centre in the German city of Nuremberg in a foreclosure sale.

Sonae Sierra secured the listed 250,000 m2 property for €16.8 mln – almost half the market value of €31.8 mln set by the court – after no other bidders came foreward.

Credit Suisse initiated the foreclosure on the Quelle centre, which has stood empty since 2009 and was Germany's second largest vacant building.

Thomas Binder, managing director at Sonae Sierra Germany, said the company planned to invest around €300 mln in refurbishing the building to provide a mixture of retail, office and residential space. He also said there were plans to include a ‘creative centre’ for a group of around 150 artists and creative personnel who have been occupying the property.