Verdion has acquired a 10,200m² logistics opportunity south of Leipzig from wholesale business Franz Kerstin. The property is located on a 40,000m² site at Patterken 11, 06686 Lutzen, which benefits from close proximity to the key motorway A9. It currently accommodates two longstanding tenants and offers the potential to more than double the amount of industrial and warehouse space within the site boundary. Starting later this year Verdion will construct a 12,000m² modern logistics facility on a speculative basis ready for completion in summer 2022. The company will additionally invest €10m in the site for the speculative development as well as partially refurbishing the existing building.
Oliver Kemper, Senior Investment Manager at Verdion said: “This is another attractive acquisition for the fund as part of our ongoing investment programme. Last year Leipzig’s logistics market was the fourth largest in Germany and it is especially dynamic at the moment, due to the availability of labour and overall costs.
Florian Stobe, Head of Investment – Germany, at Verdion said: “This leasing profile and capacity for additional development gives us the opportunity to capture potential rental growth in the medium term. At the same time, we are creating long-term value through this new development, which will be built speculatively in response to strong regional demand. The site fits well with the VELF1 strategy of adding value through active asset management as well as additional development, and its location balances other acquisitions in the north, west and centre of the country.”