Invesco Real Estate, the global real estate investment business of Invesco has strengthened its position in the European logistics sector with the acquisition of a plot in Langenselbold, near Frankfurt am Main, Germany, for the speculative development of a small-size logistics warehouse.
The acquisition was completed by Invesco Real Estate Europe Fund III – SCSp (Europe III), the firm’s third successive European value-add strategy. The property is being developed in partnership with Propel ONE, a Vienna-based logistics specialist, marking the third collaboration between the two firms. The Langenselbold project is part of a broader seed portfolio comprising multiple plots across prime German-speaking markets, all earmarked for the development of small-scale logistics and light industrial facilities.
Designed to achieve DGNB Platinum certification, the facility will incorporate heat pump systems as its primary energy source, complemented by green roofs, solar panels, smart meters, and LED lighting. The project aligns with Invesco’s sustainability objectives, ensuring energy efficiency and a reduced environmental impact.
Strategically positioned east of Frankfurt am Main, near Hanau, Langenselbold benefits from its location within the Greater Rhine-Main region—one of Germany’s most dynamic economic hubs. The area offers robust infrastructure and first-class transport links, including proximity to Frankfurt Airport, a key node for international trade.
Felix Richter, Co-Head of Transactions Germany & Austria at Invesco Real Estate, commented: “We are happy to announce that Europe III was able to secure this plot of land in a very attractive structural set-up. With the receipt of the building permit in such a short period of time, the target is to be able to complete the development within the next 12-15 months. The two buildings and in total four lettable units allow a maximum of flexibility regarding letting the c. 18,000 m². We feel comfortable that both the high quality & sustainability of the buildings we will develop as well as the unit sizes that are planned will meet the current demand of potential tenants.”
Richard Chambers, Managing Director – Fund Management, Europe at Invesco Real Estate, added: “Investors are looking for attractively priced, value-creative investment opportunities and Invesco is well placed to meet this need navigating a fractured market through our local teams and specialist partner relationships. We will continue to partner with best-in-class teams such as Propel ONE across strategic investment themes on behalf of Europe III, providing access to both a pipeline of assets at an attractive entry point and specialist expertise to create value throughout the life of the fund.”
Armen Gevorkian, CEO of Propel ONE, stated: “An excellent strategic partnership with Europe III proving the ability to execute complex acquisition structures - we are happy to increase cadence in our high conviction markets. Focusing on strategic and sustainable locations around Frankfurt aligns fully with our strategy. We are keen to announce further tactical acquisitions together with Europe III in Germany in the near future.”
Invesco Real Estate’s Europe III seeks to capitalise on short-term pricing opportunities to unlock long-term value. The fund is targeting up to €1bn in investor commitments, leveraging Invesco Real Estate’s extensive experience in European value-add strategies. To date, the firm has made 47 investments across seven sectors in 10 countries, with 22 realised investments delivering a 33% gross IRR and 1.6x gross EM / 26% net IRR and 1.5x net EM.
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