Last mile specialist Valor Real Estate Partners has acquired an infill location in East Berlin which it plans to extend and refurbish.
The 40,100 m2 industrial site on Marzahner Strasse has been purchased from GEHE Pharma via a sale and leaseback transaction.
On expiry of the existing lease, Valor intends to undertake a significant refurbishment and extension of the existing 22,000 m2 building, to create a 25,000 m2 property, suitable for both single and multi-tenant occupiers in the distribution and 3PL sectors.
Valor said the €50 mln investment would be its largest to date in Germany, a market where Knight Frank forecasts an additional 1.37 million m2 of last-mile space will be needed by 2026, the most in Europe.
Camila Malzkorn, vice president at Valor, said: 'The Berlin in-fill market is characterised by a shortage of modern, functional space, underpinned by chronic land shortages and political guidelines, with rising construction costs set to further limit new development.
'Leveraging our growing in-country origination and asset management capabilities will enable us to significantly improve this assets income profile, delivering a sustainable, flexible fit-for-purpose warehouse that meets the growing demand from last mile operators.'
The property is located in a key East Berlin submarket, with Berlin city centre just 14 minutes’ drive and 1.9 million people accessible within a 30-minute drive.
Formed in 2016, Valor owns and manages a €3 bn portfolio comprising approximately one million m2 across more than 150 last-mile assets. Germany is a key growth market for Valor, where it recently opened offices in Berlin and Munich.
The transaction was presented by Colliers on behalf of the seller. Valor was advised by CMS Hasche Sigle (legal) and Hollis Global (technical/environmental).
