Hines has acquired a modern, core logistics building in the heart of the Ruhr region for its open-ended Hines European Core Fund (HECF).
The ‘ESSENtial’ logistics property was completed in 2015 and is part of the Medion Technology Campus in Essen-Kray directly on to the A40 motorway. At the time of its construction, the 35,000m² site played a pioneering role in sustainable development due to its use of geothermal energy and a ventilation system with heat recovery.
Simone Pozzato, Senior Managing Director and fund manager of HECF, said: “We believe that for funds with dry powder, now is the time to deploy capital again – selectively. Prime logistic markets have sensibly repriced since 2021, new construction is limited and will likely remain subdued, while tenant’s demand is piling up in key, supply constraint logistics hubs. All these factors should continue to push rental growth in the busiest locations. We are delighted to add this prime asset to HECF’s growing logistics portfolio on behalf of our investors and we are actively screening new opportunities across several German cities.”
Christian Meister, Managing Director at Hines Germany added: "ESSENtial’s location, combined with optimal third-party usability made it an excellent fit for Hines and HECF. It also aligns with our ESG commitments, and we plan to actively work to improve the property's sustainability criteria still further.”
Colliers International acted as an intermediary in the transaction. The buyer received legal advice from GSK, tax advice from EY and technical advice from Orange Recon and M&P.
Image source - Hines.
Europe Real Estate — an overview of real estate developments in European countries.
