USAA targets further growth in European logistics

USAA RealCo is poised to expand its European portfolio with a number of 'sizable' investments over the next few months, according to executive managing director Europe David Buck.

'There is a great deal of obsolescence in the European logistics market, whether it be economical, functional or locational in nature, as the EU continues to mature moving from local to national and international distribution. Additionally, the rapid growth of the e-commerce sector and continued build out of road infrastructure and networks has further contributed to the level of obselescence. We see great opportunities for the development of Class A modern flexible and adaptive space going forward,' Buck told PropertyEU in an interview.

The company, which secured its first European investment in October 2014, has built up a sizable portfolio with a buildout value of €1 bn over the past year, largely through its joint venture with UK-based developer Mountpark.

In the next few months, the venture intends to commence a 100,000 m2 build-to-suit project within the UK, while also starting the construction of a 35,000 m2 spec development in Wroclaw, Poland and a 43,000 m2 spec development in Pilsen, Czech Republic, added Buck.

'For us, the European platform provides us with an expanded opportunity base, providing increased diversification of our investment portfolio which is currently around $13 bn. Our plans for growth are opportunity driven and we are committed to the long-term.'