Tristan's Episo 3 acquires German logistics park for €31m

European Property Investors Special Opportunities III, an opportunistic fund advised by pan-European real estate investment manager Tristan Capital Partners, has completed the acquisition of a logistics park in Germany for €31 mln.

The transaction is the first of three investments in Germany worth a combined €327 mln that the fund anticipates in early 2015.

The 24.3-hectare logistics park is located on the outskirts of a suburb of the northwestern city of Bielefeld. It comprises almost 85,000 m2 of warehousing and offices, 11% of which is currently vacant. Martkauf Holding, a subsidiary of Edeka Group, will lease back 64% of the park’s space that it currently occupies. CEV Handelsimmobilien assisted Marktkauf Holding with the technical and financial side of the transaction.

Ali Otmar, managing director of Investments at Tristan Capital, said: 'This investment offers an excellent balance between substantial ongoing cashflow from strong covenants and the value-add potential through the development of new grade-A logistics space over time. Once the business plan is completed it will become a very attractive fit for long-term core investors which have been increasingly focusing in this attractive asset class in Germany.'

The park has planning consent for the development of an additional 38,600 m2 of space. Alpha Industrial, a Cologne-based specialist developer and asset manager with which Tristan funds have worked in the past, will develop the site in phases throughout the hold period and make a significant co-investment.

Episo 3 was advised by Mayer Brown, PriceWaterhouseCoopers and BNP Paribas on the transaction. Marktkauf Holding/CEV Handelsimmobilien were advised on legal issues by KPMG Law.