Invesco Real Estate has acquired a cluster of warehouses in Bruchsal, Germany, on behalf of Invesco Real Estate Europe Fund III – SCSp (Europe III), the third European value-add strategy in succession for the firm.
In partnership with Propel Industrial, the Vienna-based developer of prime logistics assets and an established partner for Invesco Real Estate in the European logistics sector, the 80,000m2 brownfield site will be fully redeveloped. The project offers significant upside potential, particularly concerning value-creative asset management strategies.
The existing industrial buildings on the site, constructed between 1979 and 2002, no longer meet today's standards for modern industrial use and warehousing. The business plan envisions the development of approximately 45,000m2 of high-quality, sustainable industrial space that will meet the requirements of future users.
Situated between Stuttgart and Frankfurt/Heidelberg in southwestern Germany, the Bruchsal site is located 20 km north of Karlsruhe and 50km south of Heidelberg. With highly convenient access to major highways such as the A5, A6, and A8, this facility serves as a crucial distribution hub connecting Switzerland, France, and central Germany.
Felix Richter, Co-Head of Transactions Germany & Austria, Invesco Real Estate, said: “Today marks another milestone in our relationship with Propel Industrial and our focus on Europe's highly attractive logistics market. The acquisition of the Bruchsal site, with its inherent long-term potential, underscores our shared vision and commitment to providing institutional investors with best-in-class opportunities in Europe.”
Richard Chambers, Managing Director – Fund Management, Europe, Invesco Real Estate, added: “At a time when investors are increasingly looking for higher-yielding investment opportunities, our focus on value-add transactions with partners such as Propel Industrial is key. To access compelling opportunities at the right price in a fractured market requires expertise and on-the-ground teams, and that is what we are able to achieve.”
Armen Gevorkian, CEO at Propel Industrial, said: “We are excited to achieve another great milestone by accessing the German market with our strategic partner Invesco Real Estate. This off-market site in one of Germany’s most sought-after submarkets highlights our combined strengths to act locally with an institutional backbone and deploy capital into highly valuable and resilient locations.”
Image source - Invesco.
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