German fund manager Union Investment has acquired a 63,000 m2 logistics centre currently under construction in Monsheim near Worms, in Rhineland-Palatinate, Germany, for an undisclosed amount.
The vendor and future user is logistics service provider Pfenning Logistics.
Completion of the property, known as multicube rheinhessen, is scheduled for the end of 2018. The occupier has agreed to lease the building for a period of 15 years.
The acquisition is being made on behalf of the Unilmmo: Global open-ended real estate fund and represents the fund's first logistics property.
'The logistics centre in Monsheim is being developed by pfenning logistics to a high specification, resulting in a correspondingly high level of construction quality. Our confidence in that quality is reflected in our early acquisition by way of forward funding,' said Alejandro Obermeyer, head of Investment Management Dach at Union Investment Real Estate. 'In addition, the general area is one of the most sought-after logistics locations in Germany and therefore provides excellent conditions for a long-term investment.'
Union Investment has recently made several investments in the logistics segment as a strategic addition to its portfolio. In 2017, it bought four logistics centres worth a total of €142 mln for three different real estate funds.