Oxenwood Real Estate has acquired a portfolio of prime DHL Freight logistics properties in Germany for €71.6m, reflecting a net initial yield of 5.40%.
The six cross-docked, facilities, totalling 77,340 m², have been acquired by Oxenwood on behalf of Oxenwood Catalina, the joint venture with Catalina Holdings, from Deutsche Post DHL in a sale-and-leaseback transaction.
The properties in Duisberg, Cologne, Appenweier, Landsberg, Wurselen and Weissenhorn, which are operated by DHL Freight, have been leased back on a combination of 10 and 15-year triple net leases, with the rents increasing annually in line with the German Consumer Price Index.
Stewart Little, Co-Founder of Oxenwood, said: "For some time we have been looking for an appropriate opportunity within mainland Europe to continue the growth of Oxenwood. The fundamentals of the market are very attractive and we believe will complement our UK portfolio well. The seed portfolio with long leases and a triple net cash flow are an excellent place to start and we look forward to further expansion of this element of our portfolio. The opportunity to work with DHL was also a determining factor”.
Jeremy Bishop, Co-Founder of Oxenwood, said: “We are delighted to have closed our first European transaction with our joint venture partner, Catalina. This marks a significant step forward for our plans to establish the UK and European logistics platform”.
Oxenwood was advised by CBRE and Deutsche Post DHL was advised by JLL.
