Commerz Grundbesitz-Spezialfondsgesellschaft (CGS), a subsidiary of Commerz Grundbesitz Group, signed the deed for the 'Logistikpark Distriport' logistics property in Fos sur Mer near Marseille, which is earmarked for the company's EURO PROPERTY 1 institutional property fund.
The project has a total investment volume of approx. €33 million, and is scheduled to be completed in the summer of 2007. According to the Fund Management, the initial gross yield against purchase price/net rent at full tenancy will equal 7.8%. The asset is sold by the Marseille port authority.
Built as cross-docking facility, the logistics property has a usable floor space of 50,000 m². 'Cross-docking' means that the building permits un/loading from both sides, and that shorter indoor distances make the handling of goods more efficient.
This project development is located directly on the free port of Marseille, and has superior traffic connections to the European interior via motorways, inland waterways, rail cargo and the airport of Marseille. Moreover, the property benefits from its immediate proximity to the new container terminal in Fos sur Mer where goods transfers will be concentrated in conjunction with the restructuring of the free port of Marseille. The expansion of the docks and terminals for container ships of the latest generation, and the doubling of the container capacity by 2008, both ensure additional growth.
Signing the deed for this project underlines the continued investment strategy pursued by the Management of Commerz Grundbesitz Group (CGG):
"We have intensified our search for new investment opportunities not just for our public property funds, but also for our institutional property funds and other real estate products. As far as the real estate group as a whole goes, we are planning real estate acquisitions with a volume of more than Euro 2 billion worldwide," Dr. Frank Pörschke, Spokesman of CGG Management, emphasizes.