Valad Europe has acquired a portfolio of four logistics assets in Germany for €26.1 mln, reflecting a net initial yield of 8.82%.
Valad Europe has acquired a portfolio of four logistics assets in Germany for €26.1 mln, reflecting a net initial yield of 8.82%.
The investment was made on behalf of its Valad European Diversified Fund (VEDF).
The 35,582 m2 portfolio comprises four properties, all of which are let to logistics group Trans-o-Flex Schnell-Lieferdienst, a subsidiary of Austrian Post, and has a weighted average lease expiry of more than seven years.
The portfolio includes the 16,919 m2 Grubenstraße 12 in Hürth, near Cologne; the 8,006 m2 Am Donaubogen 2 in Neumünster; the 6,510 m2 Rudolf-Diesel-Straße 11 in Kassel; and the 4,147 m2 Zaunheimer Straße 9 in Koblenz. The assets are designed and utilised as cross-docking facilities for logistics and parcel services.
VEDF launched with initial equity of €180 mln to invest and a total fund capacity of €450 mln, employing leverage between 50-65%. The fund invests in core plus/value add assets in Germany and the UK with individual lot sizes between €5 - €45 mln.
'This is our first portfolio acquisition for VEDF in Germany,' commented David Kirkby, Valad Europe’s chief investment officer. 'We were attracted by the quality of the covenant and the dispersed location of the assets across Germany, all factors which add to the overall quality of assets in the fund.'
He added: 'We continue to seek further investments in Germany and the UK as we build a fully diversified portfolio that will benefit from the strong fundamentals of these markets.'
Valad Europe manages €4.5 bn of investment and development assets across Europe.
