Investors make unsolicited offers for €130m Primark logistics hub

Dietz, the German real estate company, has kickstarted a structured process that could lead to the sale of a 113,000 m2 logistics asset in Roosendaal in the Netherlands.

The Bensheim-based company has appointed an unnamed advisor after receiving several unsolicited offers from investors for the asset leased to clothes retailer Primark, with other inbound inquiries coming from agents.

According to well-placed sources, Dietz is not keen to sell but the level of speculative interest has led to the setting up of a process as the advisor now assesses “bid” levels with a view to the owners taking a decision over a potential sale.

Dietz owns the asset 50/50 with Malaysia’s Employees Provident Fund (EPF). It was initially held in a 50/50 development JV with Logistics Capital Partners (LCP), but LCP’s interest transferred to EPF upon completion of the asset in 2016.

In 2015, Dietz and EPF set up KWASA Dietz Germany as a joint venture to invest up to €500 mln in equity into logistics and industrial real estate in Germany and neighbouring countries over a period of three years.

Known as a prime logistics hub in Europe for its strategic location, the Primark building is in close proximity to both the major ports of Rotterdam and Antwerp. This accessibility offers the ability to serve key markets such as Benelux, France, and Germany. Primark agreed to take a new 10 year lease with up to approximately 86,000 m2 developed in two phases. It was one of the largest logistics pre-lets to have taken place in the Netherlands as Primark signed up for a major hub to serve its Northern European network of retail stores and expansion programme. It occupies a 16 hectare site in Borchwerf Business Park.

Dietz declined to comment on the Dutch asset, but it is believed interest has been pitched at around €130 mln, representing a yield of sub 4%.

It is hardly surprising that owners of high-profile logistics assets are receiving unsolicited offers given the level of demand for the asset class in Europe, partly spurred by the growth in e-commerce.

CBRE said this week it forecasts 300 million ft2 of additional European logistics space will be needed by 2025 to meet rising e-commerce demand.

Dietz is based in Bensheim is southern Hessen, Germany, and was started 55 years ago by Helmut Dietz. Its board of directors currently consists of chairman of the management board, Wolfgang Dietz, Hafez Balaei, and Markus Engelmann.