Union Investment has agreed to buy a logistics property portfolio from German logistics service provider Trans Service Team (TST), on behalf of open-ended real estate fund Unilmmo: Europa.
The purchase price is some EUR 120 million, subject to all contractually agreed conditions being met.
The logistics property portfolio has a total rental area of approximately 120,000 sq m and consists of one existing property and three development projects in the Ruhr and Rheinhessen regions.
The existing property comprises some 24,000 sq m of rental space and was constructed in 2016 on Gneisenauallee in north Dortmund. Another logistics property offering approximately 17,000 sq m of space will soon be completed nearby. TST is developing a further new build, which is also part of the portfolio, on Siemensstraße in Bönen, adjacent to the A2 motorway, some 25 kilometres east of the Dortmund site. The logistics centre in Bönen comprises around 30,000 sq m and will likewise be completed soon.
“The Ruhr region is one of the most sought-after logistics areas worldwide. The outstanding infrastructure and high population density mean that conditions are highly favourable for logistics services. We already hold investments in the Rheinhessen region through other real estate funds. The TST development project provides us with a good opportunity to increase our exposure in the area,” said Stephan Riechers, Head of Investment Management Logistics.
TST’s development project in the Rheinhessen region is planned for Worms. The property on Mittelrheinstraße in Worms will have approximately 49,000 sq m of rental space and is scheduled for completion by spring 2020. All new builds are expected to receive DGNB (German Sustainable Building Council) certification in Gold. The existing property in Dortmund already has a DGNB Gold certificate.
Following these acquisitions, Union Investment’s logistics portfolio comprises 22 properties and projects worth some EUR 1 billion.