Valor Real Estate Partners has invested €50m to buy an industrial site in Germany as part of a value-add strategy.
The European last mile real estate firm has acquired the 40,100sqm industrial site on Marzahner Strasse in East Berlin in a sale-and-leaseback deal with GEHE Pharma.
Valor said the acquisition is the firm’s largest in Germany to date.
The manager said, once the existing lease is expired, it expects to refurbish and extend the existing 22,000sqm estate, delivering a 25,000sqm asset, suitable for both single and multi-tenant occupiers.
Camila Malzkorn, vice president at Valor, said: “The Berlin in-fill market is characterised by a shortage of modern, functional space, underpinned by chronic land shortages and political guidelines, with rising construction costs set to further limit new development.
“Leveraging our growing in-country origination and asset management capabilities will enable us to significantly improve this asset’s income profile, delivering a sustainable, flexible fit-for-purpose warehouse that meets the growing demand from last mile operators.”
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