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EXPO: Foreign buyers pile into Dutch logistics

Overseas buyers account for 92% of all transactions, according to fresh data from property services company Savills.

H1 investment in Dutch logistics is up 12 percent year-on-year with foreign buyers dominating the market, according to property services company Savills.

The first six months of this year has seen €635 million invested into the Dutch logistics real estate sector and overseas investors are accountable for 92 percent of all transactions, compared to 69 percent in 2015.

The UK and US have been leading the investment charge into the Dutch logistics market this year, making up 23 percent and 17 percent respectively of the total volume of cross border investment in H1. Australia (14 percent), Belgium (11 percent) and a UK/German JV (13 percent) have also been significantly active in the market.

“The increase in volume can be much attributed to the increase in logistic portfolios being transacted. While they only accounted for 5-20 percent of the transacted volumes in previous years, from 2013 onwards portfolio deals have constituted roughly half of the total volume transacted,” Douglas van Oers, associate director, Logistics & Industrial Agency, Savills Netherlands.

Demand for logistics property has continued in Q3, with Savills Investment Management buying a three-unit portfolio for €77 million, Exeter Property buying a centre in Venray for €36 million, CBRE Global Investors investing in a sale-and-lease-back transaction in Born for €28 million and Standard Life purchasing logistics space at Schiphol.

“The focus has shifted to large single asset deals and by the end of the year Savills forecasts the total volume to reach around € 1.1 billion. The high level of investor interest is putting downward pressure on yields, said Niek Poppelaars, associate director, Logistics & Industrial Agency, Savills Netherlands. “Since the yields have already been decreasing over the past two years, further contraction is likely to be limited.”