Rockspring Property Investment Managers LLP, on behalf of its PanEuropean PLP fund, has acquired a logistics warehouse development in Venlo, the Netherlands, from a prominent local developer, Van Den Boogaard with a total development cost of approximately €22m.
The new 40,000m² logistics warehouse, which is 50% pre-let, will be constructed on a 60,000m² plot and is expected to complete in November 2016 with a BREEAM rating of ‘Very Good’.
Located in the Trade Port North industrial estate in Venlo, one of the largest logistics hubs in Europe, the property is strategically positioned close to the German and Belgian borders and has immediate access to an extensive motorway network. The North Sea ports of Amsterdam, Rotterdam and Antwerp, as well as the international airports of Maastricht, Düsseldorf, Amsterdam and Eindhoven, are also in close proximity to Venlo.
The Venlo logistics market, which comprises customs clearance points and large distribution centres serving the entire European territory, hosts a number of logistics service providers as well as an increasing number of retailers. This market, which benefits from a deep labour pool extending into Germany, is also increasingly becoming a best-in-class reference point for sustainable distribution buildings and practices.
Flavio Casero, partner and fund manager of PanEuropean commented: “This acquisition reflects PanEuropean’s focus on specific investment themes, including distribution centres in major and highly sought-after logistics hubs.
“With a target portfolio size of €1bn, low debt, and a balanced exposure to retail, office and logistics products in western Europe and Scandinavia, PanEuropean has been delivering strong and stable income returns to its investors through a blend of core investments and selected opportunities, such as this development in Venlo, which have the potential to strengthen both the capital and income return profiles of the fund.”
Laurien Van Wieringen, head asset management, Benelux for Rockspring, said: “As the Dutch economy continues to recover, global and European trade conditions improve, and occupational demand and rental growth projections increase, the timely acquisition of this logistics development allows us to deliver a high quality warehouse in this important and undersupplied Northern European logistics hub, which has exceptional distribution access.”
Regional minister Twan Beurskens (economic affairs, province of Limburg) said: “Rockspring’s decision to invest substantially in Venlo is further proof that our region is at the heart of the European logistics world. Venlo is truly a hotspot for logistics, and together with the municipality of Venlo the Province of Limburg will continue its efforts to further strengthen this position.”
Established in 1973, PanEuropean is one of the longest standing European open-ended funds with a gross asset value of approximately €500m and commitments from 17 institutional investors.
Rockspring currently manages a portfolio of logistics assets totalling approximately €800m, located across the principal logistics corridors in France (39.1%), UK (33.7%), Germany (10.5%), Spain (9.1%), Sweden (4.9%) and The Netherlands (2.8%).
CBRE and the specialist Dutch agency, Industrial Real Estate Partners, have been appointed by Rockspring as leasing agents for the remaining vacant space. Rockspring was represented on the transaction by legal advisor Loyens and Loeff and technical advisor Arcadis, while Van Den Boogaard was represented by Estadium Real Estate Advisory and legal advisor STIJL advocaten.
