Savills IM purchases two prime logistics properties
10 December 2019
Savills Investment Management (Savills IM), the international real estate investment manager, has purchased two prime logistics properties in Germany for approx. EUR 140 million on behalf of a consortium of South Korean institutional investors. The assets were acquired off-market from the Dubai based Gulf Islamic Investments LLC and Rasmala Investment Bank Ltd.
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The assets have a total lettable area of 88,884 sqm and form a logistics hub let on long-term lease contracts to Amazon, the world’s largest e-retailer.
The two single level buildings at Kaltbandstrasse 4 and Warmbreitbandstrasse 3 represent the latest generation of mega-distribution centres. Located only three kilometres north east of Dortmund CBD in the Rhein-Ruhr region, they have close access to Germany’s extensive road network, including six motorways, national and international railways, Europe’s largest inland port and the airfreight centre at Dortmund Airport. They form a key part of Amazon’s primary distribution hubs in Germany, and are among the company’s largest facilities in the region.
The acquisition brings Savills IM’s total investments since August 2018 in Europe on behalf of South Korean investors to over EUR 1bn, while the Strategic Partnerships team now manages over EUR 4.5bn on behalf of a range of Asian investors.
Jon Crossfield, Head of Strategic Partnerships at Savills IM, commented:
“With prime logistics yields continuing to fall to new record lows across all of Europe, careful stock selection is becoming even more critical. To acquire two new single level units, let on long leases to Amazon in the Rhine-Ruhr is rare and in our view, reflect some of the best logistics real estate in Europe. We are delighted to have been involved and the assets are a great addition to SavillsIM’s growing AUM of prime logistics of over EUR 4 billion.”
Soenke Ezell, Director of Investment at Savills IM, Germany commented:
“These assets closely meet the purchaser’s investment strategy, which is to generate secure income from a tenant with a first-class credit rating. Furthermore, Germany remains one of the largest and most liquid investment markets in Europe and the logistics sector is arguably the most competitive of them all.”
Clifford Chance advised on the transaction with regards to legal, tax, financing and structuring matters. Other advisers in the transaction included Drees & Sommer (technical due diligence) and PwC (financial due diligence).
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