ICG Real Estate, the property division of global alternative asset manager ICG, has completed the sale of a 65,000 sq m industrial facility in Jenbach, Austria, to gas engine manufacturer INNIO Group for €138m. The disposal marks a successful conclusion to a sale-and-leaseback transaction that was executed two years ahead of schedule, delivering returns significantly above initial projections for the Strategic Real Estate I Fund.
The property, which serves as INNIO's headquarters and its primary centre for research, technology development and manufacturing of Jenbacher gas engines, was originally acquired by ICGRE in October 2020. The initial deal saw INNIO lease back the site on a 20-year triple-net lease with annual 2% rental uplifts, providing the manufacturer with operational stability whilst unlocking capital for business investment.
The facility employs more than 2,000 people and houses INNIO's award-winning digital manufacturing operations, including more than 110 production facilities and 350 connected devices. The site has won multiple accolades for environmental sustainability, apprenticeship training and its low energy footprint, positioning it as a flagship example of mission-critical industrial real estate.
Krysto Nikolic, Global Head of ICG Real Estate, said: "We are delighted to dispose of this asset, significantly ahead of schedule and to the mutual benefit of INNIO and our investors. This sale affirms our core thesis of value creation through sourcing of mission-critical real estate and the engineering of innovative solutions for corporate occupiers, ensuring their long-term infrastructure needs while generating meaningful outperformance."
For institutional investors and developers, the transaction demonstrates the resilience of industrial assets with strong operational fundamentals and long-term occupancy agreements. The early exit at a premium also highlights growing appetite for specialised manufacturing facilities in Europe, particularly those supporting the energy transition and advanced engineering sectors. INNIO's hydrogen-ready gas engine technology positions the facility at the intersection of traditional industry and sustainable energy infrastructure, a trend that is attracting increasing capital allocation from real estate investors seeking exposure to future-proof assets.
The deal reflects ICG Real Estate's strategy of targeting operational real estate where corporate occupiers have critical infrastructure dependencies, enabling the firm to structure flexible capital solutions whilst securing institutional-grade income streams.
People mentioned:
- Krysto Nikolic, Global Head of ICG Real Estate
Image: Krysto Nikolic
Companies mentioned:
- ICG Real Estate, real estate division of ICG
- ICG, global alternative asset manager
- INNIO Group, manufacturer and servicer of reciprocating gas engines
