Oxenwood Real Estate has bought its first portfolio in Germany for €71.6m.
The UK based real estate investor acquired the six cross-docked logistics assets with 77,340sqm of space on behalf of the joint venture with Catalina Holdings, from Deutsche Post DHL in a sale-and-leaseback transaction.
The amount paid reflects a net initial yield of 5.40%.
The properties in Duisberg, Cologne, Appenweier, Landsberg, Wurselen and Weissenhorn, which are operated by DHL Freight, have been leased back on a combination of 10 and 15-year triple net leases.
Oxenwood said the rents will increase annually in line with the German Consumer Price Index.
Stewart Little, the co-founder of Oxenwood, said: “For some time we have been looking for an appropriate opportunity within mainland Europe to continue the growth of Oxenwood.
“The fundamentals of the market are very attractive and we believe will complement our UK portfolio well.”
Little added that the seed portfolio with long leases and a triple net cash flow are an excellent place to start and the company looks forward to further expansion of this element of its portfolio.
Jeremy Bishop, who is also a co-founder said: “We are delighted to have closed our first European transaction with our joint venture partner, Catalina.
“This marks a significant step forward for our plans to establish a UK and European logistics platform.”
