Global real estate investment management platform AEW has acquired a portfolio of 14 logistics assets in Germany through the acquisition of a fund managed by Patrizia and Garbe.
AEW said the Roots logistics portfolio was acquired on behalf of a German insurance investor.
The portfolio comprises a total of c.285,000 sqm of logistics space, which is 96% let, located across Germany’s leading logistics markets of Munich, Frankfurt, Stuttgart and Hamburg. The 14 assets are a balanced mix of high quality distribution and cross-dock properties and benefit from a stabilised and secure cash flow from occupiers including DB Schenker, DSV and Dachser.
All the logistics assets in Germany are located in major urban areas with excellent transport links and are underpinned by strong market fundamentals, including low vacancy rates and a lack of available modern logistics space, resulting in high occupier demand and value growth potential.
“This transaction allows us to access a portfolio which exclusively comprises modern, high quality logistics assets that are spread across numerous established logistics hubs in Germany, providing good diversification. Through executing our active asset management strategy, our plan is to reduce vacancy whilst unlocking the reversionary potential of the portfolio to generate further upside potential over the next few years,” said Gereon Kohlgrüber, Head of Investment Germany at AEW.
Dr. Marc Langenbach, Head of Funds & Separate Accounts Germany at AEW added: “We are very pleased to have secured this portfolio for our client. The portfolio is strongly aligned to the mandate’s strategy of investing in high quality logistics assets in key distribution hubs across Germany, which remains an attractive market due to the structural drivers and undersupply of high quality space. AEW has a breadth of experience in the European logistics market managing a total of €4.6 billion of industrial assets across different vehicles and therefore we are well placed to take full advantage of the value creation potential this portfolio presents.”
AEW was advised by Greenberg Traurig, Drees & Sommer, PwC and King Spalding on this transaction.