AEW has entered the Austrian logistics property market by acquirirng a new cross dock warehouse in Vienna.
AEW said the logistics property was acquired on behalf of a German separate account investor.
The property is fully let to DHL on an 18 year lease (with first break at 10 years) and subleased to Österreichische Post as part of the strategic partnership between the two companies.
Constructed in 2019, the asset comprises 11,600 sqm of lettable area as well as c. 40,000 sqm of outside space. AEW will seek a BREEAM Very Good energy certification for the building as part of its asset management plan.
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The facility is situated in the Hagenbrunn submarket of Vienna, with direct connections to the A5 and A8 motorways connecting Vienna to the Czech Republic and Slovakia, and to Federal Road 7 leading to Vienna’s city centre. Vienna is Austria’s largest and most important logistics market both with regards to serving the capital city’s large consumer base with its e-commerce requirements as well as the strategically important location it occupies between Central, Southern and Northern Europe.
“With this acquisition we have secured a prime logistics asset for our client in a first class logistics location that serves both Austria’s largest and capital city, Vienna, and acts as a main hub for goods flowing between Northern, Central and Eastern Europe. The property is of high construction quality and offers long-term secured cash flow through a remaining 18 year lease with the world’s largest logistics company, DHL. In addition, we expect the asset to continue to benefit from the strong underlying structural tailwinds of technology, urbanisation and e-commerce, which will create further demand pressure in this already undersupplied Austrian market,” said Christopher Thiele, Separate Account Manager at AEW.
AEW was advised by Dorda, TPA, EY and Oterea.