Union Investment and Deka add to stock of German logistics assets

Both of Germany's biggst fund managers, Union Investment and Deka Immobilien, have also been investing in logistics assets, in addition to the steady stream of commercial real estate projects (too many to mention) which they transact monthly, both in Germany and abroad.

Union Investment is buying the "Fiege Mega Center" for €46m, is currently under development in Burgwedel near Hannover. The property with 48,600 sqm lettable space is the first logistics asset for the Hamburg-based fund manager's open-ended real estate private fund immofonds 1, a fund operated in Austria.

The fund has to date been investing in office, retail, hospitality and medical centres, but Kurt Rossmüller, responsible for Union Investment Real Estate Austria said, ‘Following the integration of the former Immo KAG into the real estate area of Union Investment, we have strategically shifted focus to include logistics centres. The project development of the Fiege Mega Center is of high quality and is taking place in one of the strongest logistics region in Germany, which meets the demands of our investors.’

The seller is Fiege Logistik, who is developing 40,000 sqm storage space in four hall sections, around 3,900 sqm office space, 4,750 mezzanine space, and 181 parking spaces. The center offers 52 loading docks and will be DGNB-Platinum certified. Fiege will retain three hall sections for themselves, while the fourth is leased to the drugstore chain Rossmann, whose headquarters are nearby. The project is scheduled for completion in December 2017.

Meanwhile Deka Immobilien has bought a German logistics portfolio in a sale-and-leaseback transaction with Danish logistics group DSV, for an unspecified amount. The assets will be allocated to the portfolio of the fund manager's WestInvest InterSelect fund.

The portfolio has 85,000 sqm of lettable space, including 231 truck and 263 car parking space across three units, including two recently-built halls in Homburg (Saar) and Peine in North Rhine-Westphalen, and a development project in Bochum. The assets are all fully-leased to DSV A/S Global Transport and Logistics.