Los Angeles-based real estate investment management giant CBRE Global Investors and London-based fund manager Rockspring Property Investment Managers have each announced separate investments in the logistics sector in Germany – deals indicative of the rising demand for industrial assets in Germany’s growing property market.
CBRE Global Investors has completed the acquisition of a logistics property close to the Frankfurt airport. The firm, via one of its real estate funds, said it had bought the Phase 4 of Multipark Mönchhof, an industrial property comprising of a three-storied office building and a warehouse spread across an area of 55,972 square feet, located within an industrial park in the Rhine-Main area. The financial details of the deal are not known. Phases 1, 2 and 3 of the project were acquired by CBRE Global Investors in 2010 and 2012 respectively.
“The acquisition of Phase 4 is very attractive as we have accessed a highly competitive and liquid investment which also complements the recent acquisitions of Phase 1-3 of the same development,” Richard Everett, fund manager at the firm said in a statement. He further added that the firm has “increased its exposure to the German market, which is favorable considering Germany is one of the strongest and most resilient economies and property investment markets in Europe.”
In another logistics buy in the region, London-based Rockspring Property Investment Managers has acquired a logistics development land in close vicinity to the new Berlin airport and will be investing over €85 million in equity. The property was bought in partnership with the European logistics and industrial developer, Verdion.
The land was acquired for €13.5 million. With the proposed development of 999,967 square feet of space for the Verdion Airpark logistics park, the total equity funding by Rockspring is estimated to be more than €85 million, according to a company statement.
“This transaction reiterates Rockspring’s commitment to Berlin and our belief in the growing importance of strategic logistic sites in Germany, which benefit not only from strong regional access, but which are also within easy reach of the city and airport,” said Stuart Reid, partner overseeing Rockspring Germany. “With Berlin’s projected growth and Berlin Brandenburg Airport expected to become one of Europe’s busiest airport hubs on opening, we consider this site to be one of the best in the region.”
The project will be developed in a number of phases and will comprise logistic warehousing units ranging from 53,819 square feet to 430,556 square feet.
“Verdion Airpark occupies an exceptional location adjacent to what will become one of Europe’s most important airports,” said Michael Hughes, chief executive officer of Verdion. “Our commitment to this location is underpinned by the continued growth forecast for both the airport and the wider Berlin economy.”
A report released by Colliers International earlier this week cited lower yields for office and retail properties and low interest rates as the main factors propelling this demand for logistics assets in Germany. The report has estimated the transaction volumes in the logistics investment market in Germany to cross €3 billion this year, in line with the huge volumes reached in 2014. Last year saw a 57 percent increase in the total invested amount in this sector over previous years.