AEW has purchased a Grade A distribution warehouse in Utrecht, the Netherlands. The development has been acquired in a sale and leaseback transaction on behalf of a German pension fund from DHL. The asset will benefit from a 10-year firm lease with DHL Parcel. The BREEAM certified development will comprise ca. 15,200m² of Grade A logistics space. It is situated in Lage Weide, a strong and well-established area of Utrecht that is close to the city centre and adjacent to the motorway connecting Amsterdam to the South of the country (A2) and to Germany (A12). The investment is underpinned by the region’s strong fundamentals, with limited warehouse vacancy and scarcity of land for development. The purchase price was not disclosed.
Frederique Weber, Country Manager for The Netherlands at AEW, commented: “This high-quality development is let to a strong covenant. The transaction expands our logistics footprint in the Netherlands, where we believe the fundamentals driving the growth of the logistics market, namely the rise of e-commerce and urbanisation, will continue, regardless of the uncertainty the world is experiencing due to COVID-19. Furthermore, it also develops our strong partnership with DHL across Europe.”
Lars-Henning Pylla, Separate Account Manager at AEW, added: “The current situation in the European and international real estate markets requires a deliberately selective and forward-looking investment and asset management strategy. In addition to the expected requirements for short to medium-term storage capacities due to COVID-19-related changes in the value chain, we believe that a strategic location and tenant covenant continue to drive returns.”
