TH Real Estate has agreed to forward fund a 19,500 m2 development project in Waddinxveen in the Netherlands, on behalf of its European Logistics Fund (ELOF), for €22.6 mln. The asset was acquired in partnership with Cording Real Estate.
The asset is being developed by VolkerWessels Vastgoed and VolkerWessels Logistics Development, who will complete construction of the project in Q2 2018. It has been 100% pre-let to Eosta, an international distributor of organic fresh fruits and vegetables, which has signed a fixed 15-year lease.
'The Dutch logistics market has specific benefits due to its centralised location in Western Europe as well as the location of the main ports,' commented Tim Hennes, fund manager for ELOF at TH Real Estate. 'Waddinxveen, in particular, benefits from its location between four major Dutch cities (Rotterdam, Amsterdam, Utrecht and the Hague).'
He added: 'Combined with the micro-location of this development, within a dedicated logistics park, and the long-term lease with Eosta, which will deliver a defensive income stream from a good tenant covenant, this asset fits perfectly with our strategy for the fund, which targets low risk logistic assets with high growth potential.'
The project comprises 14,470 m2 of distribution space and 3,845 m2 of office with a 1,110 m2 mezzanine level.
'Demand from occupiers for grade A quality logistics buildings in this region is strong. We worked closely together with Eosta during the design phase, which led to a building scheme that is a perfect fit for Eosta and meets all state of the art logistics building requirements,' said Roeland van den Berg, director VolkerWessels logistics development.
ELOF was launched in late 2016 to provide an investment opportunity for German clients in logistics assets. The fund is targeting an end portfolio of approximately €400 mln across France, Spain, the Netherlands and Italy. Current investors include pension funds, insurance firms and banks, comprising a club of 8–10 investors.
Houthoff Buruma and Linklaters served as legal advisors to TH Real Estate.
The technical and environmental due diligence was conducted by TÜV Süd Advimo GmbH. CBRE is acting as broker.
