AEW, acting on behalf of one of its funds, has acquired a logistics property, Europaring 34-40, in Kerpen for an undisclosed amount. The seller of the asset, which is located close to Cologne, is a German closed-end real estate fund. The asset, which was built in 1991 and extended in 1997, comprises a total lettable area of approximately 25,000m² of logistics and office space. AEW has identified an opportunity to reposition the asset and capitalise on the strong demand for logistics space in this region once the current occupier, who is relocating to a nearby scheme in spring 2019, vacates the property.
The asset is situated approximately 15km to the west of Cologne and around 50km from Bonn in Kerpen, a sought-after location within Germany’s central distribution network at the intersection of the A4 and A61 motorways.
Commenting on the acquisition, Alexander Strassburger, Executive Director of Investment for AEW in Europe, said: “This acquisition is strongly aligned with our value-add strategy, targeting repositioning opportunities and urban industrial assets. With the planned relocation of the single tenant, we have an opportunity to generate value by repositioning this well-maintained asset to attract new occupiers, enabling us to benefit from both the robust demand and limited supply for logistics space in the Cologne region.”