Union Investment acquires German logistics property portfolio

Union Investment acquires German logistics property portfolio
Union Investment has agreed to buy a logistics property portfolio from German logistics service provider Trans Service Team (TST). The portfolio has a total rental area of approximately 120,000m² and consists of one existing property and three development projects in the Ruhr and Rheinhessen regions. The owner-occupier of the properties is TST, which together with the Worms-based TIMBRA Group will handle development, planning and sale. The acquisition is being made on behalf of open-ended real estate fund Unilmmo: Europa. The purchase price is some €120m, subject to all contractually agreed conditions being met.
The existing property comprises some 24,000m² of rental space and was constructed in 2016 on Gneisenauallee in north Dortmund. Another logistics property offering approximately 17,000m² of space will soon be completed nearby. TST is developing a further new build, which is also part of the portfolio, on Siemensstraße in Bonen, adjacent to the A2 motorway, some 25 kilometres east of the Dortmund site. The logistics centre in Bonen comprises around 30,000m² and will likewise be completed soon.
“The Ruhr region is one of the most sought-after logistics areas worldwide. The outstanding infrastructure and high population density mean that conditions are highly favourable for logistics services,” said Stephan Riechers, head of Investment Management Logistics at Union Investment. “We already hold investments in the Rheinhessen region through other real estate funds. The TST development project provides us with a good opportunity to increase our exposure in the area.”
TST’s development project in the Rheinhessen region is planned for Worms. The property on Mittelrheinstraße in Worms will have approximately 49,000m² of rental space and is scheduled for completion by spring 2020. All new builds are expected to receive DGNB (German Sustainable Building Council) certification in Gold. The existing property in Dortmund already has a DGNB Gold certificate.

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