Logistics and commercial real estate investor Palmira Capital Partners has made its debut investment for the Palmira UIC 2 fund, in the form of a sale-and-leaseback transaction on a 10,400 m2 property in Radebeul near Dresden.
Financial details were not disclosed.
The industrial asset, completed in 2006, occupies a site of around 17,500 m2 and provides a lettable area of approximately 7,800 m2 of storage and production space and 2,600 m2 of offices and staff rooms. The property is fully let on a 15-year lease.
Palmira UIC 2 (Palmira Unternehmensimmobilien Club 2), which is aimed at institutional investors, has a target equity capital volume of around €250 mln, for a total investment volume of around €450 mln. To date, equity commitments of €150 mln have already been made. Half of the total has been subscribed by investors who had already participated in the predecessor fund Palmira UIC 1.
Palmira UIC 2, the company's third corporate real estate fund, aims to establish a broadly diversified portfolio across regions and sectors. The focus is on commercial parks, small-scale office parks and production properties in Germany. The planned distribution yield is 6.25%, Palmira said.
Palmira was advised on the legal and tax aspects of the transaction by Dentons, Dusseldorf. Duff & Phelps acted as consultant on technical details. Nova Ambiente was responsible for environmental aspects and Westbridge for ESG monitoring.