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Logistic business
Baytree said it plans to develop up to 30,000 sqm in a single Grade-A logistics warehouse on the brownfield site, to include office space and storage in mezzanine.
The pan-European logistics and industrial development platform Baytree Logistics Properties, is developing a 30,000 sqm logistics asset in Hannover on a build-to-suit basis, in what is the group's first German project.
The off-market deal is a breakthrough for Baytree, which was launched by AXA Investment Managers in 2015. The site has been purchased by Logistics Development Club, a fund managed by AXA IM - Real Assets. The German acquisition follows on two big logistics deals by Baytree in Dagenham and Luton in the UK, and in Orleans in France.
Located in the industrial Brink-Hafen area of the city, the German site is close to major road, rail and river routes, while just 10 minutes from the center of Hannover, 5 minutes from the A2 motorway and 10 minutes from Hannover Airport. The site may be operated by tenants for urban, regional or national distribution.
Baytree said it plans to develop up to 30,000 sqm in a single Grade-A logistics warehouse on the brownfield site, to include office space and storage in mezzanine. The site is zoned for industrial use and Baytree is currently demolishing existing structures on site.
Hannover is the sixth-largest logistics occupier market in Germany, with the current prime vacancy rate estimated at just 4%. Take-up in Germany has been steadily increasing since 2014 driven primarily by the growth of e-commerce, changing consumer habits and the reconfiguration of supply chains. Baytree said it intends to grow its presence in Germany through new development of logistics sites in locations underpinned by a demand/supply imbalance.
According to Laurent Jacquemin, European Head of Transactions at AXA IM - Real Assets: "The logistics and industrial sector remains attractive, being supported by structural changes in the way consumers and businesses operate, driven by e-commerce."
