German fund Union Investment has acquired a logistics centre near the city of Aachen, in Germany.
Financial details were not disclosed.
Located close to the borders with Belgium and the Netherlands, the property comprises around 105,000 m2 and is let on a long-term lease to logistics provider, Hammer.
The vendor in the deal was GARBE Industrial Real Estate.
Union made the purchase on behalf of its institutional open-ended real estate fund, UniInstitutional European Real Estate.
Stephan Riechers, head of investment management logistics at Union Investment Real Estate, said: ‘The coal mining district between Cologne and Aachen is a highly attractive logistics region for long-term real estate investors because of its good infrastructure.
‘In addition, the location close to the borders with Belgium and the Netherlands is ideal for international logistics operations. As such, it gives us a high degree of investment security.’
Christopher Garbe, managing director of Garbe Industrial Real Estate, said: ‘We are currently seeing rising demand from institutional investors for logistics properties with long leases.
‘Low yields in the traditional office and retail segments mean many investors are increasingly looking for alternative asset classes that offer higher returns.’