London Schroders Property Investment Management today announces the disposal of six logistics warehouse units located in Germany from its Pan European Property Logistics Fund. The sale price of approximately €163 million represents a capital value of over €740 per m² and exceeds the valuation of the assets. 80% of the facilities are in the core locations of Hannover, Hamburg and Munich.
This disposal follows marketing of the properties by Jones Lang LaSalle which was initiated by Schroders because it was felt a competitive bidding process could be achieved in the current market. The assets attracted strong interest and after three rounds of bidding, terms were agreed and contracts have now been exchanged to sell the portfolio to Prologis, the leading global owner, operator and developer of industrial real estate.
Duncan Owen, Head of Property Investment, comments: “This is a significant transaction for us in Europe. We are pleased that this disposal helps to achieve our strategy and maximizes returns to the investors in the Fund. It is further evidence of the strength of Schroders Pan European platform.”
Schroders successful disposal completes the programme of acquisitions, developments and asset management of the German part of the Logistics Fund. The successful leasing and active management of the assets by Schroders during the period of ownership has maximized investment performance and ultimately the value of the properties.
Tony Smedley, Head of Pan European Funds, commented: “We are delighted with this result for our investors. To have maximized pricing through completing value add initiatives and selling the German portfolio through a competitive process is testament to the skills of our Pan European team. We expect additional sales to be executed in the near future”
The Schroder Pan European Logistics Fund was launched in 2003. Following other recent sales, it currently holds assets valued at approximately €470m (at June 2013). The Pan European Logistics Fund is one of Schroders cross border funds in Continental Europe and still has key assets in France, Germany, Benelux and Italy. The Pan European team is led from the London office with support from its local teams in Amsterdam, Paris, Frankfurt and Milan.
Buddy Roes, Fund Manager, Pan European Logistics Fund commented: “Our successful leasing of the six key logistics sites over the past 18 months improved the security of income and reduced the vacancy. The quality of this portfolio was the main factor for the strong interest, the great locations along with the stable rent levels created significant interest from investors.”