PATRIZIA AG has acquired a pan-European portfolio of 42 logistics assets from BentallGreenOak for around €1.2 billion on behalf of a logistics fund, backed by a club of institutional investors, comprising PFA Pension in Denmark and Public Officials Benefit Association (POBA) in South Korea as well as PATRIZIA Logistik-Invest Europa II (PLIE II).
Of the 42 acquired assets, 39 are yielding properties as well as three forward purchased new logistics developments in Italy and Spain which are partially pre-let.
Located in France, Spain, Italy and the Netherlands, the portfolio comprises over 1.4 million sq m of existing lettable area as well as a further 138.000 sq m of lettable space for the three developments in Italy and Spain.
The properties are located in Europe’s key logistics corridors and are close to 90% income producing, let to a reputable and diverse tenant base of over 30 national and international businesses from the ecommerce, manufacturing and third party logistics sectors. Key tenants include Carrefour, Aldi, Dachser, DHL, Easydis, and Geodis. The overall portfolio weighted average unexpired lease term (WAULT) is over seven years.
Rob Brook, Head of Alternative Investments at PATRIZIA, commented: “This purchase provides immediate exposure to a portfolio of institutional quality and scale across four separate markets, which will deliver robust, reliable returns to our investors. Furthermore, with strong structural tailwinds and the highly attractive fundamentals of the logistics sector, we expect there to be additional potential opportunities for the portfolio to cover growth markets and to diversify the pan-European logistics platform further, due to a relatively low base of e-tailing penetration across Europe in contrast to some specific markets like the UK, Germany and The Netherlands.
Anne Kavanagh, Chief Investment Officer at PATRIZIA, added: “With this transaction, we at PATRIZIA have once again demonstrated our expertise and ability to structure large-scale complex portfolios on behalf of a club of institutional investors, thanks to our strong local network across Europe. To complete a deal of this magnitude by bringing three key investors together is testament to our proven track record to spot strategic opportunities and execute them.”