Panattoni Europe, a leading developer of warehouse and logistics space, has begun to develop a new 16,400-m² warehouse near Stuttgart, Germany, as part of its new joint venture with Pramerica Real Estate Investors.
The project is being built for Lakner Spedition und Logistik GmbH. Pramerica Real Estate Investors is the European arm of the U.S.-based Prudential Financial, Inc.'s real estate investment management and advisory business.
Lakner will be providing logistics services to international toy manufacturer Schleich GmbH at the new building in Schwaebisch Gmuend, about 40 km east of Stuttgart. The joint venture expects to complete the facility, which will serve as the Schleich's European distribution center, by the summer of 2011.
"This development marks the latest step in our plan to increase the breadth and depth of our pan-European business platform by establishing our operations in Germany," said Jean van Hecke, Managing Director for Panattoni Europe.
"The German market plays a key role in our overall business strategy. We look forward to increasing our presence in Germany to expand our client offerings and to facilitate the critical link between our successful operations in Central and Western Europe."
This project is the first in the recently launched joint venture between Panattoni and Pramerica Real Estate Investors for Western European logistics projects.
Max Kreuter, Portfolio Manager, Pramerica Real Estate Investors, commented: "This first deal for the joint venture comes just weeks after it was launched, underlining the level of demand for this type of warehousing asset in Western Europe and our ability to execute deals quickly when we identify an opportunity. We are currently looking at a number of other possible projects, and expect to announce further deals shortly."