Union Investment has acquired the Rocket portfolio from GARBE Industrial Real Estate. The logistics portfolio consists of six development projects (scheduled for completion in 2021) and two existing buildings. The properties are located in Achim, Rendsburg, Cloppenburg, Emden, Meßkirch, Kaiserslautern, Echzell and Frankenberg. The purchase price was not disclosed.
The Rocket portfolio is distributed throughout Germany and split across six federal states. Offering a total of 218,144m² of space, the properties are fully let to a leading US online retailer on leases ranging from 8.5 to 20 years. The specific locations were chosen to help ensure a better, faster and more reliable delivery service in the respective regions. Seven of the eight properties are cross-dock facilities which are required for last-mile delivery. They are located either close to major conurbations or in regions that are not currently regarded as logistics hotspots but which are important for reaching potential customers. All locations are very well connected to the surrounding infrastructure. The property in Achim near Bremen will be used as an e-fulfilment centre.
“The two funds provide a compelling answer to our institutional clients’ investment needs. We are delighted to have successfully completed this portfolio deal, which offers our investors the prospect of sustained long-term returns,” said Bernhard Kraus, a member of the management team at Frankfurt-based Union Investment Institutional.
Christopher Garbe, managing director of GARBE Industrial Real Estate, commented: “We’re delighted to be able to expand our pan-European collaboration with Union Investment through the sale of this portfolio.”
“The acquisition of the Rocket portfolio marks another major step towards increasing the proportion of logistics properties in our holdings,” said Stephan Riechers, head of Investment Management Logistics & Light Industrial at Union Investment.