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Trianon - Frankfurt
In its first move into the German logistics market, GreenOak Real Estate, in partnership with Apeiron, has bought three big box German warehouses as a 340,000 sqm portfolio. The deal, for a price thought to be around €350m, was made in a joint venture with Korean investors Hana Financial Investment and Tiger Alternative Investors. The seller is the Dubai multi-family office Tilad.
The three fully-leased warehouse properties have an average size of 110,000 sqm, and are located in established logistics and industrial areas near Munich (BMW warehouse in Niederaichbach), Karlsruhe (Daimler Interpark, Offenbach an der Queich) and Dortmund Hermes fulfillment centre in Löhne), in keeping with GreenOak’s strategy to buy assets in Europe’s key logistic nodes. The three assets are leased on long-term leases to, among others, BMW, Daimler and the Otto Group.
The investment represents GreenOak’s entry into the German market. Earlier this year, GreenOak entered the Belgian market, acquiring two logistics properties with about €100,000 sqm, through separate transactions. GreenOak has recently also acquired 14 logistics assets in France, Spain, and the Netherlands, toatalling about 340,000 sqm.
GreenOak’s London-headquartered partner Apeiron has made several logistics investments in Germany over the past few years, including transacting nearly €900m in value in Germany over the past year. Hana Financial Investment made headlines recently by becoming the new co-owner of the Frankfurt office tower Trianon, while for Tiger Alternative Investments this is their first European deal.
John Carrafiell, co-founder of GreenOak and a European industry veteran from his years at Morgan Stanley, said: “Benefiting from a central location in Europe, a robust economy, low vacancy, and significant supply constraints, the German logistics market is well positioned for continued strong performance. Large, modern and well-located logistics facilities are the key real estate asset for today’s economy. With continental Europe lagging behind the US and the UK in the provision of these facilities, the fundamentals driving occupier demand are strong.”
Vojkan Brankovic, founder of Apeiron, said: “This is a really exciting time for German real estate but in particular for the German logistics sector. Changing consumer habits are driving the exceptional growth of this real estate sub-sector, and presenting some excellent investment opportunities for those looking for long term stable cash flows.”
