GREYKITE European Real Estate Fund (Fund) has acquired a large, geographically diversified 13-asset logistics portfolio, totalling 400,000m2, for €350m, which commences the Fund’s European logistics strategy. The assets are strategically located in dominant, well-connected logistics hubs, mainly across Germany, France, and the UK. The portfolio is 98% occupied, has significant reversion potential, and is leased to 20 high-quality blue-chip tenants including Kühne + Nagel, BSH Hausgerate, Teva Pharmaceuticals, Iron Mountain and Ski Rossignol.
Given its meaningful size at the inception of the strategy, the new portfolio provides immediate scalability, and thus, optionality to either build a logistics platform or operate the assets independently. Initially, the Fund will partner with leading operating partners for the respective markets.
Following the formal launch of GREYKITE in March, this transaction represents the third investment strategy for the Fund and the second focused on logistics. The high-growth logistics sector continues to benefit from attractive supply and demand fundamentals, underpinned by supportive structural trends being led by consumer behaviour patterns and supply chain challenges driving the need for nearshoring.
Michael Abel, Founder and CEO of GREYKITE, commented: “This is our third transaction since launching the Fund earlier this year. We have now seeded a number of investment themes which will enable us to rapidly build a multi-billion euro portfolio, focused on high-conviction sectors supported by compelling structural and demographic fundamentals. Continued market dislocation is presenting a unique opportunity for investment firms like ourselves with the firepower and deal execution capabilities, and no legacy issues, to acquire high-quality assets and portfolios at attractive pricing.”
Dan Valenzano, Senior Partner of GREYKITE, added: “Our ability to act quickly enabled us to unlock this off-market opportunity. In addition to the formation of our separate Polish logistics strategy, the Fund has now built a significant exposure in the German, French and UK logistics sectors in a very short period of time.”
Image source - GREYKITE.
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