Union Investment has expanded its European logistics portfolio by acquiring a property in the greater Hamburg area for around €55 mln.
Union Investment has expanded its European logistics portfolio by acquiring a property in the greater Hamburg area for around €55 mln.
The property investment manager has purchased a logistics complex with 63,873 m2 of storage and office space in the Allermöhe industrial area. Fully let on a long lease to DHL Solutions, a subsidiary of Deutsche Post, the property is being added to the portfolio of open-ended real estate fund Unilmmo: Deutschland.
DHL's main customer at this location is the Hamburg-based fashion label Tom Tailor, which intends to make Allermöhe its pan-European logistics hub. Union Investment secured the property in December 2013 at an early stage of development.
Law firm Hogan Lovells International advised Union Investment on the deal.
'The market for logistics buildings in and around Hamburg is constrained by a reluctance to allocate land for storage and distribution use,' said Philip La Pierre, head of Investment Management Europe. Currently let to a single tenant, the property offers good re-letting prospects due to its flexible building configuration, added La Pierre.
Union is targeting DGNB Silver certification for the new build asset. Commercial and technical property management of the building will be handled by developer Ixocon, which specialises in logistics properties. Part of the Hamburg-based Buss Group, the company already manages logistics properties for Union Investment in Hamburg-Hausbruch, Norderstedt and Hanover with a total of 215,000 m2 of rental space.
