CBRE Global Investment Partners (GIP), the indirect arm of Los Angeles-based real estate investment manager CBRE Global Investors, has purchased a European logistics portfolio valued at €350 million as it looks to deepen its exposure to the sector.
The portfolio, comprising seven assets across France, Germany, the Netherlands and Spain, was acquired from clients of the London-based real estate asset management firm TH Real Estate.
Jeremy Plummer, head of CBRE Global Investment Partners, said: “The acquisition gives our investor clients exposure to a high quality portfolio of logistics assets in strategic locations across Europe. Our goal is to complement the existing portfolio with further acquisitions of similar quality.”
TH Real Estate will continue to manage the portfolio on behalf of GIP as well as seek further acquisitions for it. The program will primarily target assets across France, Germany, Spain and Benelux. Investments in Central and Eastern Europe will also be considered.
“European Logistics has been identified by CBRE GIP and our research team as one of the key asset classes which a diversified, income focussed investment strategy should take advantage of,” Thorsten Kiel, head of logistics, Europe at TH Real Estate and fund manager for the vehicle.
“Good quality buildings in well-established logistics hubs are expected to deliver strong income returns, particularly in the Western and Southern European markets, where the spread between bonds and prime logistics yields are still more than 450 basis points to 550 basis points.”
European logistics is gaining significant traction with investors of late. Last month, the Canada Pension Plan Investment Board (CPPIB), Dutch pension manager APG Asset Management and Sydney-based logistics property developer and fund manager Goodman Group formed a £1 billion (€1.3 billion; $1.5 billion) UK logistics partnership.
And then last week, The Blackstone Group took control of Certeum, a Helsinki-based logistics and industrial property investment company, after acquiring a 50 percent stake in the company from Varma Mutual Pension Insurance Company. Certeum owns 122 European logistics and industrial properties valued at €895.6 million.
CBRE GIP is an independent division of CBRE Global Investors, the real estate investment business of real estate services giant CBRE. GIP invests in private funds, secondaries, co-investments and joint ventures, partnering with operators and fund managers for each strategy.