Disposal undertaken on behalf of two of Europa’s value add funds
Europa Capital, the pan-European real estate investment manager, acting on behalf of its pan-European funds, Europa Fund V (“EFV”) and Europa Fund VI (“EFVI”) has completed the sale of a Dutch and German portfolio of urban logistics and warehouse assets to Strategic Industrial Real Estate (“SIRE”), Arrow Capital Partners’ platform backed by Cerberus. The purchase price was €270m.
The 38 asset portfolio is concentrated in key logistics and urban markets along major transport corridors in The Netherlands and Germany. In total, it provides c.360,000 sq. metres of accommodation and is let to a diverse range of e-commerce and 3PL occupiers including Lekkerland, Deutsche Post Immobilien (DHL), Dutch Organic International Trade B.V., Fahrrad XXL Feld GmbH, CWS boco Deutschland GmbH.
The assets, which have been amassed since August 2018 were originally acquired by Europa Capital on a transaction by transaction basis on behalf of three different value add investment strategies (First Business Parks, Dutch Urban Light Industrial Platform and German Logistics Partnership) covering urban logistics in Germany, urban logistics in The Netherlands and warehousing in Germany, respectively. The strategies were based on the premise of improving the occupancy and rental profile by letting vacant space and restructuring or extending leases. The occupancy across the portfolio has grown to c. 91%.
The 38 assets will fit in to SIRE’s existing portfolio in two of its priority and fast growing markets, The Netherlands and Germany. The assets are well located, complement SIRE’s existing portfolio and have significant potential for reversion and capital appreciation, with most of the value in larger institutional quality properties.
Jason Oram, Fund Manager at Europa Capital, commented: “The industrial and logistics sector remains one of our key conviction calls, with Europe positioned to benefit from the growing appetite for e-commerce, which is driving occupier demand and future rental growth. We continue to look for further opportunities, utilising our experience and strong track record in these markets to source new opportunities.”
James Pennington, Managing Director at Europa Capital, commented: “This landmark sale represents one of the largest ever for Europa Capital and is the culmination of three successful investment strategies and multiple asset purchases. It also demonstrates our track record of identifying and aggregating good quality assets in structurally supported sectors before crystallising strong returns on behalf of our investors through disposal.”