Gramercy Property Europe plc (“Gramercy Property” or the “Fund”), the Europe-focused real estate investment fund, announces that it has acquired a core logistics asset in Meerane, Germany. Gramercy Property was advised by Gramercy Europe Limited, a real estate investment fund manager focused on pan-European sale and leaseback and single-tenant transactions. This is the Fund’s 16th transaction within the past 12 months and supports the stated strategy of acquiring single-tenant properties that will generate stable, long-term income.
The institutional quality warehouse, built in 2008, comprises 25,110m² of logistics space with an additional 2,100m² of office space, offering clear 10 meter heights, 49 loading docks, and 5 tonnes per sqm floor loading capacity.
The building is let on a strong covenant to Rhenus, one of Germany’s largest logistics provider with an annual turnover of over €4bn, until 2021, with the option of a five year extension.
Meerane is a strategic industrial location, in the East Germany logistics cluster of Gera-Zwickau-Chemnitz, adjacent to the A4 motorway intersection, one of Germany’s key east-west axes. Several leading automotive companies are situated in the area, including Magna and Volkswagen.
Alistair Calvert, Managing Director & Head of Investment at Gramercy Europe, commented: “This acquisition offers a strong investment opportunity for the Fund, in a market and use-class that is becoming increasingly attractive within the wider European real estate environment. The quality of the underlying asset, coupled with the increasing attraction of the area to a number of leading businesses, gives us confidence in the long-term potential of the asset.”
