Invesco Real Estate and Propel Industrial revitalize 80,000 m² brownfield site in Bruchsal

Invesco Real Estate will comprehensively revitalize the derelict site together with Propel Industrial, a Vienna-based expert in the development of world-class logistics facilities and a long-standing partner of the company in the European logistics sector. The project offers significant potential, especially with regard to value-creating asset management strategies.

The existing commercial halls on the site, which were built between 1979 and 2002, no longer meet today's standards for modern logistics and storage centres. The business plan envisages the development of approx. 45,000 m² of high-quality, sustainable commercial space that meets the high requirements of future users.

The site in Bruchsal is located 20 km north of Karlsruhe and 50 km south of Heidelberg. With its excellent connections to the A5, A6 and A8 motorways, it serves as an important hub for the distribution of goods between Switzerland, France and destinations in the middle of Germany.

Invesco Real Estate and Propel Industrial have already worked together on several initiatives. In August 2024, for example, the two companies acquired a 27,500 m² plot of land in Bruck an der Leitha (Bruck), Austria, for Europe Fund III, on which a 15,000 m² Class A logistics property consisting of three independent units is to be built.

Felix Richter, Co-Head of Transactions Germany & Austria, Invesco Real Estate, said: "Today marks another milestone in our relationship with Propel Industrial and our focus on the highly attractive European logistics market. The acquisition of the Bruchsal property with its long-term potential underlines our shared vision and commitment to providing institutional investors with world-class investment opportunities in Europe.

Richard Chambers, Managing Director – Fund Management, Europe, Invesco Real Estate, added: "At a time when investors are increasingly looking for higher-yielding investment opportunities, our focus on value-add transactions with partners such as Propel Industrial is crucial. Finding compelling investment opportunities at the right price in a tight market requires expertise and teams on the ground, and that's exactly what we can do."

Armen Gevorkian, CEO of Propel Industrial, said: "We are pleased to have reached another important milestone in the development of the German market with our strategic partner Invesco Real Estate. This off-market transaction in one of the most sought-after German sub-markets underlines our combined strength, which has the necessary local resources and the institutional backbone for an effective use of capital in valuable and resilient locations."

Europe III aims to use attractive short-term entry opportunities in the current price environment as a basis for fundamental, long-term value creation. The fund, which completed its first closing in the third quarter of 2023 and is targeting a volume of up to EUR 1 billion, builds on Invesco Real Estate's many years of experience with European value-add strategies and the success of two predecessor funds. To date, the company has made a total of 47 investments in seven sectors and ten countries in these strategies. The 22 investments already realized achieved a gross IRR of 33% p.a. and a gross EM of 1.6 or a net IRR of 26% p.a. and a net EM of 1.5.[1]

Europe Fund III is fully aligned with Invesco Real Estate's ESG+R sustainability program, which focuses on ESG factors and resilience. To date, more than 80% of the projects invested in the last two predecessor funds have achieved high ESG certifications. [2]

The Europe Fund III is only approved for professional investors.

[1] Data as of 31 December 2024. There is no guarantee that these goals will be achieved. Please note that the fund is only approved for professional investors

[2] The fund is not managed by reference to a benchmark index. The investment concerns the acquisition of shares in an actively managed fund and not in a specific underlying asset. Any investment decision should take into account all the characteristics of the fund as described in the sales documents. Information on sustainability aspects can be found under www.invesco.com/emea/en/invesco-real-estate-management.html

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About Invesco Ltd.
Invesco Ltd (Ticker NYSE: IVZ) is a global, independent investment management company dedicated to helping people get more out of their lives. With offices in more than 20 countries, our investment teams offer a full range of active, passive and alternative investment opportunities. As of December 31, 2024, Invesco had USD 1.8 billion in assets under management for clients worldwide. For more information, visit www.invesco.com/corporate.

About Invesco Private Markets
Invesco has global expertise and extensive resources in the private markets space. With our global investment platform and $128.5 billion in real estate and private credit assets under management, we offer our investors both scale and deep expertise with over 600 investment professionals in 16 countries and over 40 years of innovative experience as of December 31, 2024.

About Invesco Real Estate
Invesco Real Estate is one of the world's leading real estate investment firms with €79.3 billion in real estate assets under management, 613 employees and 21 regional offices in the US, Europe and Asia. For over 40 years, Invesco Real Estate has been actively investing across the risk/reward spectrum in direct real estate strategies such as core, debt, value-add and opportunistic, as well as in listed real estate assets for over 400 institutional clients. Invesco Real Estate employs over 191 people in Europe in eight offices in London, Munich, Milan, Madrid, Paris, Prague, Luxembourg and Warsaw. Invesco Real Estate manages 205 properties in 14 European countries with assets of EUR 15.3 billion. The team has a wealth of experience across all three commercial sectors as well as hotels and residential real estate as of June 30, 2024.

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Significant risks
Full information on the risks can be found in the sales documents. The value of investments and the income from them are subject to fluctuations. This may be partly due to changes in exchange rates. It is possible that investors may not receive back the full amount invested when they return their shares.

Real estate investments can be illiquid and difficult to dispose of, and the fund may not be able to sell its assets at the desired time and price. The value of the assets is generally determined by the appraisal of an independent appraiser and may not be feasible. The value of real estate loans can be significantly affected by the value of the underlying properties. Real estate investments are usually not listed on any market and must be valued using appropriate models (possibly by independent experts): this can lead to valuations that may not be reflected in transaction prices. Changes in market rents, net operating income, interest rates, exchange rates, market trends and general economic conditions may cause fluctuations in the value of the assets, the relevant portfolio and the amount of cash flows generated by the fund portfolio; fixed-rate loans with long maturities are more affected by fluctuations in value in response to interest rate fluctuations. The fund may use derivatives and loans, which may result in significant leverage of the fund and large fluctuations in the value of the invested capital. Real estate investments and portfolios are subject to counterparty risk, i.e. the risk that a counterparty will not be able to meet its obligations. Real estate loans are subject to credit risk, i.e. the risk that the borrower will not be able to repay the interest and principal on the scheduled dates and at maturity. Loans or loan tranches with a lower rank (mezzanine, junior) are subject to a higher credit risk because these loans lag behind the senior ones in the repayment queue; the risk can be exacerbated in stressful situations and in the case of underperforming loans. Loans with high loan-to-value ratios or those secured by development assets are generally considered to be riskier than those with low loan-to-value ratios or those secured by income-generating assets. Commercial mortgage loans are generally considered riskier than residential mortgage loans because repayment usually depends on the successful operation of the underlying properties. Real estate investments may be subject to regulatory requirements and trends related to sustainability, which can negatively impact the value of investments that are non-compliant. This can lead to a significant investment requirement to meet the prescribed standards or characteristics. In addition, real estate investments can also be subject to significant negative economic impacts resulting from climate change, natural disasters and investors' general preference for investments with better sustainability characteristics. Real estate investments are labour-intensive and require a high level of human/manual input and activities and can therefore be exposed to various types of operational risks that can affect activities such as management, operations, reporting requirements and many others. In addition to typical real estate-related risks, investments in real estate operating companies and in real estate platforms can involve governance and business risks that, if materialized, can negatively affect the value of the investments and the cash flows generated.

Important information
This marketing communication is intended for the trade press only. Data as of January 20, 2025 unless otherwise noted.

This is marketing material and not investment advice. It is not intended as a recommendation to buy or sell any particular asset class, security, or strategy. Regulatory requirements requiring the impartiality of investment or investment strategy recommendations are therefore not applicable, nor is the ban on trading prior to their publication.

Views and opinions are based on current market conditions and are subject to change at any time.

For more information on our funds and the risks involved, please refer to the Offering Memorandum, Annual or Interim Reports and Constituent Documents. These documents are available from your local Invesco office. The management company may terminate distribution agreements.

The distribution of the fund in the EEA is only permitted to professional clients. The fund is a closed-end, unregulated Luxembourg special fund. It qualifies as an alternative investment fund (AIF) managed by Invesco Real Estate Management S.à r.l. as an external alternative investment fund manager (AIFM).

This material has been published by Invesco Real Estate Management S.à.r.l., President Building, Avenue JF Kennedy 37A, L - 1855 Luxembourg, supervised by the Commission de Surveillance du Secteur Financier, Luxembourg.

EMEA4172207/2025

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