Avignon Capital and Pierce Capital Investments have completed the acquisition of a 90,000m² Volkswagen (VW) logistics and warehouse unit in Munich from a private vendor. The investment was successfully completed together with Hyundai Asset Management on behalf of South Korean investors. The purchase price was not disclosed.
The asset is fully let to VW and serves as a strategic operation for the south of Germany and into Austria. While VW has been in continuous occupation since 1974, expanding into new buildings over the years, the asset offers a number of potential value-enhancing opportunities, including initiatives such as actively engaging with the tenant to improve lease expiry profile and site expansion. This single-let logistics unit is strategically located in the centre ring of Munich city. Avignon Capital and Pierce Capital will act as joint asset and investment managers for this property.
Phil Walker, Head of Investment Management at Avignon Capital, said: “This is an important milestone for Avignon; our largest acquisition to date and our first logistics acquisition in Munich. The demand for well-located warehouse and logistics space remains high, and with logistic yields tightening across Europe, this acquisition presented an attractive opportunity to secure core income, in central Munich, with a number of value-add opportunities. We look forward to working closely with Pierce Capital Investments to drive the value of the asset for our new investors.”
Jon-Paul Benjamins, Managing Director at Pierce Capital Investments, said: “This off-market acquisition is a solid investment for our institutional Korean clients who have a focus to invest in European real estate. With Avignon, and our partners Adiaco Consultants and CNF in Korea, we were able to meet the investment requirements of our client. Avignon and PCI will execute immediate asset management initiatives as well as longer-term strategies on this site. We are planning to significantly increase our logistics exposure across Europe, through the acquisition of existing assets as well as through forward funding or purchasing developments.”