Baytree Logistics Properties, a pan-European logistics and industrial development platform launched by AXA Investment Managers in 2015, will undertake an up to 30,000 m² logistics development in Hannover, Germany, on a build-to-suit basis. It represents a significant milestone for Baytree, being its first development project in Germany. The site has been purchased by Logistics Development Club, a fund managed by AXA IM - Real Assets.
Strategically located in the industrial Brink-Hafen area of the city, the site benefits from its proximity to major road, rail and river routes; 10 minutes from the center of Hannover, 5 minutes from the A2 motorway and 10 minutes from Hannover Airport. The site may be operated by tenants for urban, regional or national distribution.
Baytree plans to develop up to 30,000 m² in a single Grade-A logistics warehouse on the brownfield site, to include office space and storage in mezzanine. The site is zoned for industrial use and Baytree is proceeding with the demolition of existing structures on site.
Hannover is the sixth largest logistics occupier market in Germany, with the current prime vacancy rate estimated at just 4%. Take-up in Germany has been steadily increasing since 2014 driven primarily by the growth of e-commerce, changing consumer habits and the reconfiguration of supply chains. Baytree intends to grow its presence in Germany through new development of logistics sites in locations underpinned by a demand/supply imbalance.
Rabih Modad, Managing Director of Baytree Logistics Properties, commented: “This new development project represents a significant milestone for Baytree as we expand our activities into one of Europe’s largest logistics markets and is in line with our ambition to build a market-leading pan-European logistics platform. We look forward to progressing this project and marketing it to those potential occupiers who will benefit from its strategic location and excellent transport links.”
Laurent Jacquemin, European Head of Transactions at AXA IM - Real Assets, added: “The logistics and industrial sector remains attractive, being supported by structural changes in the way consumers and businesses operate, driven by e-commerce. This off-market purchase demonstrates our ability to source projects that offer investors opportunistic returns through development. We will continue to look for logistics development investment opportunities such as Hannover, in order to deliver value for our clients.”