Friday, 20 March 2015
Tristan Fund EPISO 3 completes €31 mln purchase of German logistics park (DE)
An opportunistic fund advised by pan‐European real estate investment manager Tristan Capital Partners has purchased a 24.3 hectare logistics park in the major German distribution hub of North Rhine, Westphalia from an affiliate of the Edeka Group, one of Germany’s largest retailers. The €31 mln purchase is the first transaction to complete among three investments in Germany worth a combined total of €327 mln that the fund anticipates to complete in early 2015.
European Property Investors Special Opportunities III (EPISO 3) has acquired the park on the outskirts of a suburb of Bielefeld. It comprises almost 85,000 m² of warehousing and offices, 11% of which is currently vacant.
Ali Otmar, Managing Director of Investments at Tristan Capital, said: “This investment offers an excellent balance between substantial on-going cashflow from strong covenants and the value-add potential through the development of new grade A logistics space over time. Once the business plan is completed it will become a very attractive fit for long term core investors which have been increasingly focusing in this attractive asset class in Germany.”
Five of Germany’s 10 largest logistics operators are located in North Rhine Westphalia because of its importance as a transit area between the Ruhr industrial region and the ports located in the Netherlands on the North Sea coast via the River Rhine.
The park has planning consent for the development of an additional 38,600 m² of space. Alpha Industrial will develop the site in phases throughout the hold period and make a significant co-investment.