CBRE Global Investment Partners (GIP) has acquired a portfolio of seven logistics assets across France, Germany, the Netherlands and Spain.
CBRE GIP acquired the 600,000 m² portfolio from existing clients of TH Real Estate, who continue to manage the portfolio on behalf of GIP.
TH Real Estate will continue to manage the portfolio on behalf of GIP and will seek further acquisitions. The program will primarily target assets across France, Germany, Spain and Benelux. Investments into CEE will also be considered.
Jeremy Plummer, head of CBRE Global Investment Partners, said: “The acquisition gives our investor clients exposure to a high quality portfolio of logistics assets in strategic locations across Europe. Our goal is to complement the existing portfolio with further acquisitions of similar quality.”
Thorsten Kiel Portfolio Manager, Head of Logistics, Europe and Fund Manager for the vehicle, TH Real Estate, added: “European logistics has been identified by CBRE GIP and our research team as one of the key asset classes which a diversified, income focused investment strategy should take advantage of. Good quality buildings in well-established logistics hubs are expected to deliver strong income returns, particularly in the western and southern European markets, where the spread between bonds and prime logistics yields are still more than 450 - 550 bps. This seed portfolio, spread across four attractive markets, exhibits a sound degree of risk diversification, and delivers high and stable income. Meanwhile, the assets will benefit from our asset management expertise as we endeavour to generate additional value for our client.’
Appetite for logistics assets is positive across Europe prompting competitive bidding across the region, heightened by scarcity of prime warehouses. BNP Paribas Real Estate presented the latest edition of its European Logistics Market report at Expo Real 2015. It found that occupier take-up increased by 21% in the first half of 2015 despite supply issues.
BNP Paribas Real Estate Head of Logistics Investment for Europe, Logan Smith commented: “The gradual economic improvement has had positive impact on consumption and domestic demand, which in turn stimulated the market for distribution warehouses in Europe during the first half of 2015”.
The UK, Germany, Sweden, and France, accounted for 75% of total European logistics and industrial investment during H1 2015. Total Industrial and logistics investment amounted to €10.1 bln in the same period.
Source: CBRE
