Gramercy Europe Limited is investing a total consideration of €30m in two logistics warehouses in Germany, through two separate transactions. The two transactions have been made on behalf of its latest fund, Gramercy Property Europe III Ltd (“GPE III”) and follow the acquisition of a 40,000 m² Dutch logistics warehouse, as announced previously.
Gramercy secured the acquisition of a 16,911 m² institutional quality logistics warehouse in Offenau, South-West Germany, through a sale and leaseback with one of the world’s largest parcel and courier companies. Completed in 2000 and comprising two adjacent buildings of 11,367 m² and 5,544 m², the tenant has agreed a new five year, triple net lease.
The property is well-located just 5km from the A6 motorway, a major east-west arterial route in the south of Germany connecting the Czech Republic with France. It also benefits from its close proximity to Audi’s second largest production site, Audi Neckarsulm.
In a second transaction, Gramercy is investing into a 20,538 m² logistics warehouse, located in Solingen, North Rhine-Westphalia, 20km east of Dusseldorf. Built in 2005, the modern building is fully let to Rhenus Freight Logistics (71%), the global logistics provider and Zwilling Beauty Group (29%), the premium products distributor, with five years remaining on the leases.
Located close to the A3 motorway, the main north-south artery of the Rhine-Ruhr region that connects Duisburg, Dusseldorf, Cologne and Frankfurt and with over 17 million people living within 100km, Solingen’s central location and high population density make it an excellent logistics location.
Alistair Calvert, CEO of Gramercy Europe, commented: “These acquisitions fit well with our strategy of acquiring modern, institutional quality assets, let to strong covenants, in strategic logistics locations, which offer attractive and visible income streams. We are pleased with the speed at which we have been able to deploy capital, with three assets acquired since close and several transactions that we expect to announce in the near term. The logistics sector continues to be firmly underpinned by strong occupational demand from a range of occupiers, particularly those in the e-commerce sector, and supported by a buoyant Eurozone.”
