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Warehouse and logistic space
In March this year Hines kicked off the strategy by buying a logistics complex in Maintal, outside of Frankfurt am Main. The plan is to make capital investment of up to €400m in small to mid-sized logistics properties over the next two years.
The UK-based real estate Oxenwood Real Estate has made its first sortie into the German market by buying a portfolio of DHL freight logistics properties. The sale-and-leaseback deal, for six cross-dock logistics assets with 77,400 sqm of space, is a joint venture with Catalina Holdings. The price paid of €72m represents a 5.4% initial yield.
The properties are located in the towns of Duisburg, Cologne, Appenweier, Landsberg, Wurselen and Weissenhorn, and are operated by Deutsche Post subsidiary DHL Freight, who are leasing them back on a combination of 10 and 15-year triple net leases. The rents are linked to the German Consumer Price Index.
According to Oxenwood co-founder Stewart Little, "For some time we have been looking for an appropriate opportunity within mainland Europe to continue the growth of Oxenwood. The fundamentals of the market are very attractive and we believe will complement our UK portfolio well. The seed portfolio with long leases and a triple net cash flow are an excellent place to start and we look forward to further expansion of this element of our portfolio. The opportunity to work with DHL was also a determining factor.'
Oxenwood was founded in 2014 by experienced real estate hands Stewart Little and Jeremy Bishop, who previously worked together at London & Stamford Property plc. Forum Partners and Catalina Holdings are substantial shareholders.
