Leading Cities Invest grows portfolio with logistics deal in Germany

Leading Cities Invest grows its portfolio with German logistics deal

Leading Cities Invest (LCI) has purchased several logistics sites in Germany. The Hexon portfolio consists of six newly built properties in various locations throughout central and northern Germany. The assets, which are under long-term lease, form part of the network of branches of a European market leader in the B2B vehicle parts trade. The purchase price was not disclosed.

 

The demand for real estate in the industry and logistics sectors has been steadily on the increase. The share of this asset class in the total commercial transaction volume has never been higher (2017: 15% vs. 9% in 2016). In 2017, the transaction volume for real estate in the logistics and industry sectors in Germany reached a record total of €8.7bn.

 

It is worth noting that the properties that form part of the Hexon portfolio are not categorized as pure logistics properties. They fall into the "light industrial" category, i.e. properties that not only serve for the distribution and storage of goods, but also for manufacturing and administration. Compared to pure logistics properties, they offer more complexity in terms of their technological equipment. Due to the excellent strategic locations of these properties, the potential for them being used for other purposes in the long term is relatively high. Considering the increase in online trade, logistics properties in central locations are gaining more and more importance.

 

The acquisition will help LCI to not only to further diversify the portfolio in terms of usage types but also in terms of locations. Apart from Germany, the fund has assets in Paris, Brussels, London, Edinburgh, and Toulouse.

 

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