Logistics property investor and developer Verdion announced at the Expo Real trade fair in Munich that they have entered into an agreement with the Canadian pension fund Healthcare of Ontario Pension Plan (HOOPP) for the funding and development of €1 bn worth of logistics parks in Europe.
Logistics property investor and developer Verdion announced at the Expo Real trade fair in Munich that they have entered into an agreement with the Canadian pension fund Healthcare of Ontario Pension Plan (HOOPP) for the funding and development of €1 bn worth of logistics parks in Europe.
HOOPP and Verdion said they will work together exclusively for logistics development throughout Europe, building a portfolio with a value of over €1 bn over the next five years.
Verdion, formerly Helios Europe, was established in January 2010 by CEO Michael Hughes, with the backing of Mansford Real Estate. As a result of the new funding agreement, Mansford has been bought out of the company and Verdion will now be fully owned and controlled by Hughes, together with his fellow directors.
With immediate effect, the new partnership will own and develop iPort, the 557,400 m2 rail logistics project in Doncaster UK, which has an end value of £400 mln. HOOPP will also acquire a stake in Verdion’s Link Project in Germany comprising three logistics schemes located in Berlin, Leipzig and Ingolstadt, totalling over 350,000 m2 with an end value of €250 mln. The partnership has already invested together, developing a 110,000 m2 logistics scheme in Hanover. HOOPP and Verdion are also about to commit to another major warehouse development in Germany, pre-let to an international, household name retailer.
'HOOPP is the absolute ideal long-term partner for our company,' said Michael Hughes, CEO of Verdion. 'They already heavily invest in the industrial and logistics sector in North America and have been looking for a suitable partner to expand their exposure to the UK/European logistics market for some time.'
Michael Catford, Vice President, Real Estate at HOOPP believes this is a 'great opportunity' to create a pipeline of logistics facilities in the UK and Europe. 'It will also be a meaningful step in expanding HOOPP’s real estate presence in Europe which now includes direct investments in shopping centres in the UK and the Czech Republic, and our co-venture with the Crown Estate in St. James’s,' he noted.
Cushman & Wakefield Corporate Finance advised HOOPP and Verdion was represented by de Morgan & Co and Lakestar Capital.
