German fund manager Union Investment has acquired a logistics project near Hanover from logstics service provider Fiege for €46 mln.
The Fiege Mega Center, currently under construction in Burgwedel, comprises around 48,600 m2 of space. It was acquired for immofonds 1, an open real estate mutual fund operated in Austria.
‘Following the integration of the former Immo KAG into the real estate area of Union Investment, we have strategically shifted focus to include logistics centres,’ commented Kurt Rossmüller, managing director of Union Investment Real Estate Austria. ‘The project development of the Fiege Mega Center is of high quality and is taking place in one of the strongest logistics region in Germany, which meets the demands of our investors.’
To date, immofonds 1 has invested in properties for office, retail, hospitality and medical centre use.
When completed, the FIEGE Mega Center in Burgwedel will provide 40,000 sqm of storage area in four hall sections, plus a mezzanine area of 4,750 sqm. In addition, around 3,900 sqm for office space and 181 parking spaces are available. DGNB Platinum sustainability certification is being sought.
Three of the four hall sections are leased to the logistics service provider Fiege, and one hall section has been acquired by the Rossmann chain of pharmacies, bringing the occupancy to 100%.
‘Due to its central location within Europe, the Hanover-Braunschweig logistics region is also highly significant beyond Germany’s borders,’ said Stephan Riechers, Senior Investment Manager Logistics Europe at Union Investment. ‘We consider the potential of the region to be far from exhausted and are keeping it in mind for further investments.’
