Hines plans major buying offensive in German logistics

After its major investment in office buildings in Stuttgart last month, which we reported on in REFIRE, global real estate firm Hines said it is planning to invest €400m in German logistics properties over the next two years, at the same time as it announced the acquisition of a 36,000 sqm asset.

Hines - which currently manages €4.1bn worth of properties in Germany - said as the first property acquisition under the new strategy, it purchased the fully-leased complex in Maintal near Frankfurt for the Hines Global Income Trust.

Fully leased to the logistics service providers Deutsche Post (DHL) and Schenker, plus timber wholesaler Becher, the building was sold to Hines by private investors  Werner Gutperle and Jürgen Harder for an undisclosed sum.

Hines said the plan over the next 18-24 months is to invest about €400m in logistics properties in the German market. This would enable the company to expand its established investment approach and concentration on core properties, as well as selected development projects. Last year Hines sold a portion of its existing pan-European logistics portfolio in Germany and Poland to a Blackstone affiliate for around €460m. This included five German centres, priced at €310m.

Christian Meister, managing director at Hines, said: “Our focus is on core-plus and value-add properties in good to excellent locations. Moreover, along with investments in the logistics sector, we will also be active as a project developer.”

Alexander Möll, senior managing director at Hines, said: “Against that backdrop, and after an extensive review of various options, we will also begin making selective investments in the logistics development business in course of 2019.

“This will include the purchase of land as well as existing buildings. The developed properties are intended both for our own portfolio and for market sale.”

 Since entering Europe in 1991, the privately-owned Hines has grown its European platform to include a presence in 55 cities in 13 countries with currently €16.7 billion of assets under management in Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Spain and the UK.