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PATRIZIA further increases logistics footprint with acquisition of two German logistics assets for EUR139 million

PATRIZIA AG, a leading partner for global real assets, has acquired two logistics assets in western Germany for c. EUR139 million, on behalf of one of its dedicated Pan European logistic funds “PATRIZIA Logistik-Invest Europa III”. The assets, one of which is a major pre-let development project, will together provide c. 100,600 square metres of modern, sustainability-led space with a combined WALT of almost 10 years.

The first asset is a logistics development in Hamm, North Rhine Westphalia, comprising 72,600 square metres in seven units across two buildings. Acquired from Hines, the site is fully pre-let with a WALT of 10 years to a range of tenants in sectors including e-commerce, manufacturing and food delivery.

Completed in December 2021, the buildings have been developed with a central focus on sustainability and a DGNB ‘Platinum’ target rating. The properties feature recyclable facade elements, energy efficient LED lighting, combined heat and power units and electric charging points for vans and cars.

The other asset is a c. 28,000 square metres modern, logistics warehouse located in Ennigerloh, North Rhine Westphalia, which has been acquired from CBRE Investment Management. Built in 2005, the property is fully let to the occupier B-Logistik GmbH, a regional contract logistics provider, with a WALT of 9 years, providing long term, stable income. BREEAM rating “good” is targeted.

Both assets benefit from excellent transport connectivity, with immediate access to the Bundesautobahn 2 motorway that connects the Ruhr area in the west, to Berlin in the east. Located in North Rhine-Westphalia, Germany’s most populous state which includes cities such as Cologne, Düsseldorf and Dortmund, the assets are supported by strong market fundamentals that underpin the region’s industrial and logistics sector.

The PATRIZIA Logistik-Invest Europa III fund has signed purchase agreements for logistics properties worth EUR425 million in Germany, Italy, and the Netherlands within the last 13 months. The fund with a target volume of EUR760 million is thus already almost 60 per cent invested. Around 90 per cent of the properties in the fund are certified according to BREEAM or DGNB.

Since year end of 2019, the AUM of PATRIZIA’s logistics segment has grown to over EUR6 billion. The strength of logistics assets is underpinned by strong occupier demand and extremely low vacancy rates across Europe, and its yields have consistently outperformed those by other asset classes in recent years.

With this transaction, PATRIZIA further strengthens its presence in the logistics segment in Germany, in which it already has assets with a total area of more than 1.4 million square metres throughout the country.

PATRIZIA was advised by Hogan Lovells, GSK Stockmann (both legal),  BILLIONP Paribas Real Estate (commercial) and Orange-Recon (construction controlling).

Source: patrizia.ag on the 15th of February
https://www.patrizia.ag/en/news-detail/patrizia-further-increases-logistics-footprint-with-acquisition-of-two-german-logistics-assets-for-eur-139-million/