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Bremen/Hamburg, 7. April 2020 – Warburg-HIH Invest Real Estate (“Warburg-HIH Invest”) just acquired two distribution warehouses for its special AIF, “Warburg-HIH Deutschland Logistik Invest.” The properties are located in Saarland and in the Rhine-Main region, and represent the first logistics properties that were acquired for the open-ended special AIF. Exclusivity has already been secured for additional assets for the investment fund that are worth double-digit millions, the transactions being almost signature-ready. The fund invests in modern distribution and transshipment centres with alternative use potential, located in established sites throughout Germany. To boost the fund’s performance, it is planned to add some properties with optimisation potential. The investment fund’s equity target is c. 250 million euros, of which more than 100 million euros in investor funds have already been raised. The total investment volume of the fund is 500 million euros. Institutional players may invest in the fund by acquiring equity interests of 2.5 million euros or more.
“We have made much faster progress both with the fundraising among investors and the acquisition of properties than we had planned for 2020,” said Andreas Strey, Senior Fund Manager at Warburg-HIH Invest.
The single-tenant property in Saarland, which will already be completed in April 2020, provides about 18,100 square metres of warehouse and lettable logistics space of and over 1,300 square metres of office space. It is fully occupied on a long-term lease. The second acquisition involves a distribution warehouse under development in the Frankfurt am Main metro area. Located close to Fraport, the largest freight airport in Europe, the logistics property has about 15,000 square metres of lettable warehouse and logistics space, around 2,700 square metres of office space and about 100 car parking spots. The multi-tenant property is fully occupied, the average remaining lease term being around 13 years. The completion is scheduled for mid-2020. Both transactions represented asset deals. It was agreed not to disclose the selling prices.
“The ongoing coronavirus crisis has increased popular acceptance of e-commerce, and will boost its growth in the long term. In addition, we are expecting to see a trend toward changed supply chains, especially of system- and production-relevant goods that will roll back the off-shoring to Asia and prompt increased on-shoring in Germany, resulting in growing demand for logistics accommodation in Germany. The logistics real estate sector stands to benefit from the trend accordingly,” said Lars Bothe, Senior Transaction Manager at Warburg-HIH Invest.
On the buyer side, the legal due diligence of the Saarland transaction was conducted by Norton Rose Fulbright, the technical due diligence by SCHWAB engineers Projektmanagement. Norton Rose Fulbright was responsible for the legal due diligence for the transaction in the greater Frankfurt area while REC Partners took care of the technical due diligence. Logivest acted as estate agent in an advisory role during both transactions.
“We have made much faster progress both with the fundraising among investors and the acquisition of properties than we had planned for 2020.“
Andreas Strey, Senior Fund Manager
Warburg-HIH Invest
“The ongoing coronavirus crisis has increased popular acceptance of e-commerce, and will boost its growth in the long term. In addition, we are expecting to see a trend toward changed supply chains, especially of system- and production-relevant goods that will roll back the off-shoring to Asia and prompt increased on-shoring in Germany, resulting in growing demand for logistics accommodation in Germany. The logistics real estate sector stands to benefit from the trend accordingly.”
Lars Bothe, Senior Transaction Manager
Warburg-HIH Invest
info@hih.de