Chambers Street Properties (formerly CB Richard Ellis Realty Trust), a Maryland self managed REIT headquartered in Princeton, N.J., announced it has agreed to purchase a 1,070,126 ft² (approx. 99,418 m²) warehouse distribution facility in Koblenz, Germany.
The building, which is now under construction, is due for completion in November 2012 and will be 100% leased to the European operating subsidiary of one of the world's largest ecommerce providers on a triple-net (NNN) basis until 2023.
The acquisition will be made by Chambers Street Properties, as part of its existing joint venture with Goodman Group, a global integrated property company. Goodman is the largest industrial property group listed on the Australian Stock Exchange and has 34 offices in 17 countries. The joint venture was formed to acquire stabilized, newly developed buildings sourced from Goodman's development pipeline in Europe and the U.K.
Koblenz is at the nexus of Germany's interior transportation system between the country's two major commercial/industrial areas Rhine-Main and Rhine-Ruhr. The tenant operates several distribution facilities in Germany to facilitate same-day delivery to customers there, as well as standard delivery to other parts of Western and Central Europe. The joint venture currently owns a portfolio of logistics assets in Germany.
"This property is a high quality asset currently under construction in a strong logistics location in central Germany which we will acquire on physical completion. The acquisition meets our overall investment parameters of targeting acquisitions in areas with projected rental growth, strong tenant demand and significant barriers to new construction." said Jack A. Cuneo, President and CEO of Chambers Street Properties.
"We are pleased to have strengthened our relationship with Chambers Street Properties through this transaction which reflects the caliber of assets that we are able to source through our development business," said Danny Peeters, CEO, Goodman Continental Europe.
Chambers Street Properties currently owns 124 properties, on three continents, in 44 markets totaling almost 31 million ft² (approx. 2,8 million m²) with a 98% occupancy rate and continues to be active in seeking additional assets for the Company's portfolio domestically and internationally. This is the Company's sixth acquisition in Germany.