Invesco Real Estate and Propel ONE to develop industrial park near Frankfurt am Main

The property, on which an industrial park is to be built, was acquired for Invesco Real Estate Europe Fund III – SCSp (Europe III), the company's third European value-add fund. This is the third development to be developed together with Propel ONE, a Vienna-based developer specialising in first-class logistics properties. The construction project in Langenselbold is part of a seed portfolio that includes several speculative small-scale logistics and light industrial projects in prime German-speaking markets.

The property, which is to meet the highest sustainability and energy efficiency standards, is being pursued to DGNB Platinum certification[1]. In addition to heat pump systems as the main source of energy, green roofs and solar modules, smart meter systems and LED lighting are planned.

Langenselbold is located in the east of Frankfurt am Main near Hanau and thus belongs to the Rhine-Main region. As an equally dynamic and diverse business and technology location, the region is of central importance for Germany's overall economic performance. The region also has a world-class transport system, thanks in part to Frankfurt Airport, a major hub for international trade.

Felix Richter, Co-Head of Transactions Germany & Austria, Invesco Real Estate, said: "We are pleased that we have been able to secure this structurally very attractive property for Europe III. Since the building permit was granted within a very short time, the project is to be completed within the next twelve to 15 months. The subdivision of the property into two buildings and a total of four rentable units gives us maximum flexibility in renting out the total area of approx. 18,000 m². We are confident that this project meets the current requirements of potential tenants, both in terms of the high quality and sustainability standards of the buildings and the planned sizes of the rentable units."

Richard Chambers, Managing Director – Fund Management, Europe, Invesco Real Estate, added: "Investors are looking for attractive, value-adding investment opportunities and Invesco is well positioned to meet this need. As part of Europe III's strategic investment themes, we will continue to work with best-in-class partners such as Propel ONE, providing investors with access to a pipeline of income-oriented assets as well as specific expertise to create value over the life of the fund.

Armen Gevorkian, CEO of Propel ONE, said: "The outstanding strategic partnership with Europe III underlines our ability to execute complex acquisitions – we are pleased to have increased exposure to the German market, one of our focus markets. Sustainable development projects at strategic locations around Frankfurt are fully in line with our strategy. We hope to be able to announce further tactical acquisitions in Germany together with Europe III soon."

Invesco Real Estate's Europe Fund III aims to leverage short-term opportunities from attractively priced properties as a foundation for fundamental, long-term value creation. The fund is targeting a volume of up to EUR 1 billion and builds on Invesco Real Estate's many years of experience with European value-add strategies. The company has made a total of 47 investments across seven sectors and ten countries, with the 22 realized investments in the higher-yielding portfolio generating a gross IRR of 33% and a gross EM of 1.6 / net IRR of 26% and net EM of 1.5. [2]

The Europe Fund III is only approved for professional investors.

####

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 assets under management of 1.8 trillion. USD for customers 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 $135 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 €78.8 billion in real estate assets under management, 606 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 187 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 15.8 billion. The team has a wealth of experience across all three commercial sectors as well as hotels and residential real estate as of September 30, 2024.

####

This press release is intended for use by the trade press only.
Please do not forward.

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 March 14, 2025 unless otherwise stated.

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.

EMEA4329528/2025

####

[1] DGNB = German Sustainable Building Council.

[2] Data as at 31 December 2024.