The international real estate investment manager Savills Investment Management (Savills IM) has acquired two modern logistics properties in Dettelbach near Würzburg in Lower Franconia for the European Logistics Fund 3 (ELF 3). The seller of the off-market portfolio transaction is AEW. The purchase price was not disclosed.
With the acquisition, the ELF 3 portfolio grows to 21 logistics properties in seven European countries. Following the acquisition of a logistics property in Verden, Lower Saxony, this is the fund’s second transaction in Germany. The two properties in Dettelbach increase the fund’s German portfolio to a total of three properties, which contributes to further country diversification. The entire fund portfolio has a high occupancy rate of just under 95 percent.
The fully let properties in Dettelbach comprise a total of around 97,600 square metres of rental space and are leased on a long-term basis to a German fashion company and a globally active logistics service provider. The Grade A logistics properties, which will be completed in 2023, are located in the Dettelbach industrial estate and benefit from their location at the junction of the A3 and A7 motorways. This means that they have excellent connections to the most important German north-south and east-west transport axes and are particularly suitable for national and international distribution processes. The properties were developed on a brownfield site and have DGNB Platinum and DGNB Gold certifications.
“With this off-market acquisition, we are securing two high-quality logistics properties for our European Logistics Fund 3 with long-term leases in a strategically important logistics location in Germany. The properties have modern equipment, convincing ESG properties and excellent connections to major national and international transport networks. At the same time, we are further expanding the fund’s allocation to Germany in a targeted manner, thereby increasing the diversification of the portfolio. We also have other attractive acquisitions for the fund in the pipeline,” says Sebastian Schambeck, Associate Director Portfolio Management at Savills IM.
“This transaction is one of the largest logistics transactions in Germany this year and shows that attractive investment opportunities can be realized even in a market environment that continues to be challenging. The successful completion is the result of an intensive review and a disciplined selection process. At the same time, we have a well-filled acquisition pipeline for our funds and mandates across various sectors and are examining further investment opportunities. Overall, we are seeing the first signs that the transaction market is gaining momentum again. For capital to be invested, we are currently looking for investment opportunities throughout Europe in the logistics, living, food retail and prime office segments,” says Tim Ulrich, Head of Transactions Germany, Austria & Switzerland at Savills IM.
Noerr, BNP Paribas RE, Kroll REAG, BDO and GMA advised Savills IM on the transaction. AEW was advised by GSK Stockmann and Cushman & Wakefield.
