Standard Life in first German acquisitions

Standard Life Investments (SLI) has made its first acquisitions in Germany in a bid to strengjthen its EUR 91 mln European Property Growth Funds (EPGF), the UK company said on Wednesday.

SLI, one of the largest property fund mangers in Europe, has invested some EUR 17 mln in a single-let logistics warehouse located in Neuss, North Rhine-Westphalia, the largest and westernmost state of Germany. The asset consists of 22,000 m² of warehousing space let to Asics Europe, the sportswear manufacturer. The fund's second German purchase is an industrial estate in Rattingen, north of Dusseldorf, for EUR 15 mln. The estate is multi-let with some vacancy covered by a rental guarantee, the company said.

In the Czech republic, SLI invested some EUR 13.2 mln in a single-let retail warehouse in Brno, the country's second largest city south east of Prague. The 13,200 m² warehousing space is occupied by the furniture retailer Sconto Nabytek. The transaction reflects an initial yield of 6.91%. EPGF has also committed EUR 38 mln to Hungary via a portfolio of two modern fully-let logistics warehouses at Gyor and Jaszbereny and a pre-let distribution facility in Budapest. Other activity included a 14,195 m² extension to a logistics warehouse in Belgium.

The EPGF fund, with a current value of about EUR 550 mln, targets investments in high-quality diversified portfolio of commercial properties across Europe. In 2006, EPGF returned 25.8%, net of fees.