Valad Europehas acquired a portfolio of four logistics assets in Germany for €26.1 million, reflecting a net initial yield of 8.82%. The investment was made on behalf of its Valad European Diversified Fund (VEDF).
The 35,582 m² portfolio comprises four properties, all of which are let to the logistics group Trans-o-Flex Schnell-Lieferdienst GmbH, a subsidiary of Austrian Post, and has a weighted average lease expiry of more than seven years. The portfolio includes the 16,919 m² Grubenstraße 12 in Hürth, near Cologne; the 8,006 m² Am Donaubogen 2 in Neumünster; the 6,510 m² Rudolf-Diesel-Straße 11 in Kassel; and the 4,147 m² Zaunheimer Straße 9 in Koblenz. The assets are designed and utilised as cross-docking facilities for logistics and parcel services.
David Kirkby, Valad Europe’s Chief Investment Officer, commented: “This is our first portfolio acquisition for VEDF in Germany. We were attracted by the quality of the covenant and the dispersed location of the assets across Germany, all factors which add to the overall quality of assets in the Fund. This investment follows on from VEDF’s acquisition of a shopping centre in Kelkheim, Germany, last month and demonstrates the diversity of assets the Fund is investing in. We continue to seek further investments in Germany and the UK as we build a fully diversified portfolio that will benefit from the strong fundamentals of these markets.”
VEDF launched with initial equity of €180 million to invest and a total fund capacity of €450 million, employing leverage between 50 - 65%. The Fund invests in Core Plus / Value Add assets in Germany and the UK with individual lot sizes between €5 - €45 million. The Fund will also invest in small to medium sized portfolios between €50 - €250 million.
Valad Europe manages €4.5 billion of investment and development assets across Europe, comprising 500 assets and 4,000 tenants, managed by local teams totalling 215 people in 22 offices and 13 European countries.