Union Investment acquires German logistics property

Union Investment acquires logistics centre
Union Investment has acquired a logistics property comprising some 105,000m² of rental space from Garbe Industrial Real Estate. Located in Eschweiler near Aachen, the property was completed in 2018 and is let on a long-term lease to logistics provider Hammer. The purchase price was not disclosed.
The property offers some 94,000m² of warehouse space, with another 8,500m² devoted to mezzanine areas and around 3,500m² to offices. A total of 80 loading bays enable the occupier to provide efficient logistics services. German Sustainable Building Council (DGNB) certification in Gold is proof of the building’s eco-credentials. The property is located in close proximity to the A4 motorway and is also well connected to the surrounding motorway network.
“The coal mining district between Cologne and Aachen is a highly attractive logistics region for long-term real estate investors because of its good infrastructure. In addition, the location close to the borders with Belgium and the Netherlands is ideal for international logistics operations. As such, it gives us a high degree of investment security,” said Stephan Riechers, head of Investment Management Logistics at Union Investment Real Estate.
Christopher Garbe, managing director of Garbe Industrial Real Estate, commented: “We are currently seeing rising demand from institutional investors for logistics properties with long leases. Low yields in the traditional office and retail segments mean many investors are increasingly looking for alternative asset classes that offer higher returns.”

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