Invesco Real Estate (IRE), the global real estate investment manager, is pleased to announce the acquisition of two modern logistics properties in Cologne, Germany and Norrkoping, Stockholm for ca. 83 million for one of its pan-European fund mandates.
The first acquisition is a 29,500 m² logistics center in Frechen near Cologne, Germany, which was built in 2006 and extended at the end of 2011. The asset is strategically located close to the A1, one of Cologne's principal national motorways. It is let on a long-term lease to a strong tenant, Antalis GmbH, one of Europe's leading European paper and packaging retailers.
In addition, IRE has bought a ca. 36,000 m² logistics unit in Norrkoping, southwest of Stockholm; the property is due to be extended by 12,700 m² during 2012. The center is let on a long-term lease to Stadium, Sweden's largest sports retailer, and is the company's only distribution center, serving all shops across Sweden, Norway and Finland.
The Swedish property is financed by German bank Helaba (Landesbank Hessen-Thüringen), who is acting as the sole lender in this transaction. Thanks to its central geographical location, Norrkoping has established itself as Sweden's second most important logistics center after Gothenburg.
Paddy Bingham, IRE's Director - Fund Management comments: "We are delighted with this acquisition, which adds further diversification to our pan-European fund on a sector, geographical and tenant basis.
"The logistics sector remains popular with investors as it plays a useful role in providing relatively strong and stable income returns within a portfolio. We therefore expect yields to remain broadly stable for units let on long leases to good covenants across many European markets."
The transaction was carried out together with Invesco Real Estate's local Nordic partner, Scius Partners.
Source: Invesco Real Estate
