Availability of both equity and debt for repriced logistics in strategic European locations, makes it a great time to invest.
After Edmond de Rothschild's European industrial fund added four more German and Dutch properties to its 50-strong portfolio, the fund's head said they had seen 'a stabilisation in logistics yields in the second half of 2023' making now 'a perfect moment to buy high quality assets in proven locations.'
Other investors following suit this week include Canada's Ontario teachers pension fund's JV with Boreal which picked up a logistics portfolio in strategic urban locations in France for €145 mln, while Amazon secured its regionally-important mega distribution hub in northern Spain by buying the 150,000 m2 state-of-the-art Girona property for approximately €150 mln.
Meanwhile Hines made its debut in Sweden with a €118 mln acquisition for its core-plus fund, in a sale and leaseback with a major European manufacturing company.
Among several retail deals closed was a private investor group buying The Pavilions, a 500,000 ft2 shopping centre in greater London which is now likely to be partly repurposed. Website EGi said the price paid equates to a 14.5% yield.
Following Vonovia's sterling bond issue two weeks ago, there are two further property companies returning to the re-opening debt capital markets this week. The largest, sold in the public market, was Logicor's €650 mln of euro notes, with a coupon of 4.625%.
We track five funds launching or taking in more capital, with BGO - formerly BentallGreenOak - holding a €1.38 bn final close for its latest European debt fund.
Among the three new assets put up for sale is a rare portfolio of Nordic purpose-built student accomodation.
