Global investment firm Carlyle and Montano Real Estate have formed a partnership to invest in logistics properties with a focus on distribution assets in prime urban locations in Germany.
Under the terms of the new agreement, Montano will take control of the asset management of Carlyle’s existing 12 distribution logistics properties across Germany, which were acquired by Carlyle through European Carlyle Europe Realty (CER), a €540 mln pan-European real estate fund.
Montano will work together with Carlyle to further grow the portfolio on behalf of discretionary fund managed by CER.
The partnership will predominantly focus on logistics assets in German cities with strong demographic and economic fundamentals.
Carlyle and Montano will look to add value by implementing an active asset management and leasing strategy, including refurbishments and selective repositionings. The Partnership aims to grow the overall portfolio to EUR 500m over the coming years.
Ramin Rabeian, managing partner at Montano, said: 'The distribution logistics sector continues to grow rapidly, and we are delighted to partner with a globally reputable investment group like Carlyle, to explore opportunities in market.
'We will look to add value through our sourcing and asset management capabilities and expect that our joint partnership with Carlyle will enable us to grow the portfolio quickly.'
Erik Orbach, director on the Carlyle Europe Realty advisory team, said: 'Germany represents one of Europe’s most established and attractive logistics markets with strong demand fundamentals and a shortage of high-quality modern logistics assets.
'Leveraging our extensive global and regional insights, and investing experience of the Carlyle Europe Realty team, we look forward to expanding our logistics footprint in Germany together with Montano.'
Carsten Quehl, director on the Carlyle Europe Realty advisory team, said: 'We are delighted to strengthen and expand our asset management capabilities in the German logistics segment, which is core to our investment strategy in Europe, by partnering with an experienced and recognised industry leader in Montano.'