Union Investment has acquired a 105,000sqm German logistics property from Garbe Industrial Real Estate for an undisclosed sum.

Union Investment said it acquired the asset for the open-ended UniInstitutional European Real Estate fund.

Located in Eschweiler near Aachen, the property was completed at the end of 2018 and is let on a long-term lease to logistics provider Hammer.

Stephan Riechers, head of investment management logistics at Union Investment Real Estate, said: “The coal mining district between Cologne and Aachen is a highly attractive logistics region for long-term real estate investors because of its good infrastructure.

“In addition, the location close to the borders with Belgium and the Netherlands is ideal for international logistics operations. As such, it gives us a high degree of investment security.”

Christopher Garbe, managing director of Garbe Industrial Real Estate, said: “We are currently seeing rising demand from institutional investors for logistics properties with long leases.

“Low yields in the traditional office and retail segments mean many investors are increasingly looking for alternative asset classes that offer higher returns.”