TH Real Estate has acquired a distribution centre in Venlo, the Netherlands, on behalf of its European Cities Fund, from Next Level Real Estate for €70 mln.
The asset totals 75,493 m2 set up as four units.
'Being the first logistics asset acquired for the fund, Venlo is a good diversifier. Its Grade-A quality, strong location, large lot size and tenant covenant strength, make it an exciting addition to the fund, enhancing returns and diversification for our investors,' commented Liz Sworn, co-fund manager for the European Cities Fund, TH Real Estate.
Phase one, which includes units one and two, was completed in November 2017, while the construction of units three and four (phase two) has completed recently. Discussions are underway for a third phase. The asset is let to an international retailer on a 15-year lease, which plans to use the centre as its main distribution hub.
'The asset’s location is within the top logistics hub in Europe. The demand for logistics space in the area, makes it an ideal fit within our €2.6 bn logistics portfolio in Europe, in which we invest in regions with sustainable demand drivers, and assets that will be resilient in tomorrow’s world,' said Thorsten Kiel, head of European industrial & logistics at TH Real Estate.
Venlo is the 10th acquisition for the fund, and the second asset in the Netherlands, following the acquisition of The Warehouse, a prime office asset located in Amsterdam.
The European Cities Fund is part of TH Real Estate’s global cities series.
TH Real Estate was advised by Loyens & Loeff, Malcolm Hollis, EY, Cording, and De Lobel & Partners. The seller was advised by CMS and TLF Real Estate.