After taking a majority stake in Log4Real, a German industrial and logistics developer, four months ago, management holding company Zech Group has returned its shares and agreed to a rapid decoupling of the companies.
According to a press release from Zech, after a short cooperation, the companies have decided to go their separate ways again.
In November 2016, when Zech took over Log4Real, the logistics firm's CEO Christian Bischoff (pictured) told PropertyEU that the company was aiming for 'a top three position in Europe within 3-5 years'.
Log4Real’s key selling point, Bischoff said at the time, was its focus on cutting-edge sustainable technologies in its assets, including heating and cooling.
‘The industrial and logistics real estate market has not kept pace with the technological and sustainable innovation already adopted in other sectors, such as offices and retail,’ he explained.
Backed by Zech's resources, the company said it was planning 800,000 m2 of development in 2017, 1 million m2 in 2018 and 1.2 million m2 in 2019. It's not clear how the exit of Zech will impact Log4Real's strategic targets.
In Log4Reasl's statement on the break-up. CEO Christian Bischoff said: 'We have concluded that the Log4Real development model, which is focused on advanced sustainable technologies and systems, is better served in a smaller, more nimble, specialised business structure.'
Of the existing projects in which both partners are mutually involved, Log4Real retains its 52,100 m2 industrial/logistics park at Würselen near Aachen in Germany near the borders with Belgium and the Netherlands.
The Log4Real said that the team will independently continue with its separate development pipeline programme of over 500,000 m2 of warehousing customised for its industrial and logistics tenants. This pipeline will be developed in conjunction with institutional investor partners.
Zech launches DLH
Zech, for its part, has founded a new company, called Deutsche Logistik Holding (DLH), which will focus on the development of logistics real estate.
DLH is a subsidiary of Zech's real estate division and will debut with two projects in Germany and Austria.
These projects had been taken on by Log4Real, but DLH will now spearhead their development, and make hires to implement further projects in Trebur near Frankfurt am Main and Vienna, with other schemes on the horizon.
Zech Group currently comprises six business units with operating management companies that are active in the fields of construction, real estate, hotel, environment/technology, industry and consulting, numbering around 7,000 employees.
