Equity Estate Group has sold a strategic logistics park on the outskirts of Kassel to Verdion European Logistics Fund 1 (VELF1) for €28m. The park is situated in the Lohfelden logistics hotspot, strategically located on the A7 highway in Central Germany – the country’s longest autobahn and an important north-south route. The property was held by Equity Estate Group for almost 15 years, forming part of the Queristics portfolio which was raised in 2005. In 2018 Equity Estate recapitalised the portfolio. In 2019 a property in the Netherlands was sold, followed by the second divestment of a logistics building in Willebroek, Belgium in 2020. With the sale of the Lohfelden property, the recapitalisation of 2018 will be fully repaid.
The 58,307m² plot currently comprises 16,046m² of warehousing and 3,852m² office/ commercial spaces in three buildings. Two are leased for a commercial vehicle parts centre, agricultural dealership and central warehouse. The other tenant specializes in thermoplastic extrusion. The acquisition also includes additional land with potential for a new warehouse of around 6,000m² plus 500m² office space and a 1,228m² mezzanine creating a total lettable area of 7,920m² in line with current zoning plans.
Florian Stöbe, Verdion Head of Investment – Germany said: “This asset is exactly in line with our value-add/core+ strategy: a site with great potential in one of the country’s most important logistics hotspots, combined with long term commitments from existing tenants. The intention now is to commence speculative development to meet the continuing demand for high-quality space from eCommerce occupiers in particular– an approach the fund is adopting across other invested locations.”
