Global logistics real estate company Prologis has purchased a 260,000 square meter, eleven-building portfolio in Germany.
The buildings are located in Rhine-Ruhr, Berlin, Rhine-Main, Rhine-Neckar, Hannover, Ulm and Regensburg.
The seller is an open-ended special AIF (Spezialfonds) of German pension funds, insurance groups and foundations managed by UBS Real Estate GmbH.
“Germany is a growing market and this acquisition allows us better serve both existing and future customers,” said Björn Thiemann, senior vice president, country manager, Prologis Germany. “Importantly, most of the properties are in urban infill locations, which helps our customers be that much closer to the end consumer.”
The properties are located on 60 hectares of land in core “micro-locations” and include both turn-key buildings as well as new development opportunities. Prologis has plans for redevelopment and upgrades, including rooftop solar, EV charging and LED lighting.
One-third of the UBS portfolio is leased to Prologis’ existing global customers. In addition, the transaction will add two new large and several smaller new customers to the Prologis Germany roster.
Two of the acquired buildings are short- to mid-term redevelopment properties on approximately 27 hectares. Once necessary redevelopments are completed, the facilities will allow Prologis to better serve its customers via high-quality logistics space in land-constrained, sought-after regions.
“This transaction represents the realization of our investment strategy in the region, which involves leveraging the favorable market environment and creating a stable income basis with long-term growth potential,” said Peter Rocker, director and head of transactions for Germany at UBS-AM REPM.