Union Investment has acquired Logistrial Real Estate AG and its logistics property portfolio comprising 13 existing properties and 6 development projects with a total area of around 580,000 square metres from GARBE Industrial Real Estate for €800 million.
Using its integrated platform, GARBE Industrial Real Estate will handle letting, property management and asset management of the existing portfolio and also of the new properties upon completion.
Logistrial Real Estate AG was established in 2019 with the intention of creating a logistics property portfolio and then putting both the company and the portfolio up for sale in the capital market.
The fully let existing properties and the ongoing development projects will be added to Union Investment’s two open-ended real estate funds UniImmo: Europa and Unilmmo: Global.
The 19 logistics properties are located in Germany, Austria, France and the Netherlands. Fifteen of the properties, which represent an investment of 75 per cent of the purchase price, are earmarked for the UniImmo: Europa portfolio, while four properties will be added to the stock of UniImmo: Global.
“The acquisition of the Logistrial portfolio is an important step towards strategically expanding our logistics portfolio and diversifying it across the leading European logistics markets. We are planning further steps of this kind, including portfolio acquisitions and single asset deals with developers, portfolio managers and owner-occupiers as part of sale and leaseback solutions, for example. Thanks to our excellent working relationship with Garbe, we were able to negotiate the portfolio transaction very efficiently and ensure beneficial solutions for both sides,” said Martin J. Brühl, Chief Investment Officer and a member of the management team at Union Investment Real Estate GmbH.
Prior to the acquisition of Logistrial Real Estate AG, Union Investment held 25 logistics properties worth around EUR 1.2 billion.