Garbe Industrial Real Estate Netherlands has acquired a 71,000 m2 logistics development in the vicinity of Breda, close to the Belgian border, for around €70 mln.
The asset was purchased on behalf of Garbe’s Logistikimmobilien Fonds Plus II (GLIF+II). The final transaction price is contingent on occupancy at completion and handover by the developer Vrolijk in early 2022.
The logistics facility is situated close to the A16 motorway which links the northeast of Rotterdam to the Belgian border near Hazeldonk. The asset comprises four units, making it suitable for single or multi-tenant use. Two of the units, totalling around 25,000 m2, are let to BCT Treehub on a long-term lease.
The logistics warehouse, which is targeting BREEAM 'Very good' sustainability certification, is the first asset to be developed at the Business Centre Treeport (BCT), a 62-hectare business park created to foster and boost collaboration in the tree cultivation sector. The surrounding Rijsbergen region is one of the leading locations in Europe for arboriculture.
Maurits Smit, managing director of Garbe Industrial Real Estate Netherlands, said: ‘Very high demand for warehouse space in the Dutch logistics market is being met by insufficient new high-quality supply, resulting in rental growth and ongoing yield compression.
‘The asset we have acquired near Breda is located in one of the top logistics “hotspots” in the Netherlands, with excellent accessibility to the major ports of Rotterdam and Antwerp and the entire Benelux region. Owing to the lack of available space in the region we anticipate rapid tenant uptake of the remaining units in the coming months.’
The transaction is the second to be secured in the Dutch market for the GLIF+II investment vehicle. It follows the acquisition of a 41,000 m2 distribution centre at Veenendaal on the A12 motorway corridor to the east of Utrecht. Garbe expects to finalise new transactions in the Netherlands for the fund in coming months. The fund is also open to new propositions.
A recent study by Garbe shows that rental prices for prime logistics assets in the Netherlands have increased significantly, particularly in Amsterdam and Rotterdam. Regional locations such as Eindhoven, Venlo and Tilburg have likewise reported sharp hikes in rental levels. Rising rents are typical for the current logistics market due to the scarcity of high-quality properties. Strong demand and rental growth are also driving the emergence of new logistics zones across the country, particularly in the northern and eastern areas around Almere, Zwolle, and Deventer/Enschede as well as the central Tiel/Geldermalsen and western Waddinxveen regions.
Drees & Sommer acted as technical advisor for Garbe Industrial on the Breda transaction while Greenberg Traurig provided legal counsel. Bouwbedrijf Vrolijk was legally advised by Schaap Advocaten & Notarissen and commercially by De Lobel & Partners – real estate experts who also took care of lease negotiations with BCT Treehub.