Union Investment, Garbe buy Italian logistics portfolio from Hines

Union Investment, Garbe buy Italian logistics portfolio from Hines

Union Investment and Garbe Industrial Real Estate have acquired a portfolio of two new logistics buildings with around 137,600 square meters of usable space in Italy from the international real estate firm Hines.

The companies acquired the properties on behlf of the logistics special fund UII Garbe Logistik Fonds which was set up jointly by Union Investment and Garbe in 2020 and has already built up a fund volume of over €850 million.

Janica Gerecke, member of the management of Garbe Industrial Real Estate and responsible for international business, comments: “We rely on a boots-on-the-ground approach because local expertise enables us to create profound added value. Together with our partner Union Investment, we have now successfully invested in two top logistics locations in Italy and implemented the European growth strategy in a targeted manner. In addition to Italy, we are currently examining the markets in Great Britain and Spain intensively.” GARBE is represented throughout Europe with 16 locations in Germany, Austria, the Netherlands, France, Luxembourg, Italy, Spain, UK, the Czech Republic, Poland and Slovakia.

Marco Grassidonio, Country Head Italy at Garbe Industrial Real Estate, adds: “In Italy, as in all of Europe, the demand for logistics space is very high. Especially in the economically strong metropolitan regions of Milan, Bologna and Turin and the country’s central transport hubs, demand exceeds supply. Thanks to our direct market access, we were able to secure two investment opportunities for the fund.”

The new building in Castel San Pietro Terme is located in an established logistics location around 25 kilometers from Bologna with a direct connection to the A14 motorway. The property has around 83,600 square meters of floor space in two connected buildings and was recently completed (September 2022). More than half of the space has already been let long-term to the food manufacturer Alce Nero SpA and the transport company Andromeda Srl. Lease negotiations for the other areas are at an advanced stage.

The project development in Tortona is also located in one of the top logistics locations in Italy on the A7 between Milan and Genoa. It belongs to the Piacenza sub-market, which, with its proximity to Milan, Turin and Pavia, accounts for around 20 percent of all storage in Italy. The property will have 54,000 square meters of floor space, which is already fully leased to the international transport company Arcese Trasporti SpA. Completion is scheduled for the first quarter of 2023.

Garbe takes over the leasing, property and asset management for the fund via its integrated platform as well as the investment management together with Union Investment.