Union to double logistics portfolio, acquires 120,000m2 of assets

Union Investment has agreed to buy a logistics property portfolio from German logistics service provider Trans Service Team (TST) for around €120 mln.

The portfolio has a total rental area of 120,000 m2 and consists of one existing property and three development projects in the Ruhr and Rheinhessen regions. The owner-occupier of the properties is TST, which together with the Worms-based Timbra Group will handle development, planning and sale.

The acquisition is being made on behalf of open-ended real estate fund Unilmmo: Europa, which owns assets worth €12.7 bn and up to now held only one logistics property, in Heddesheim near Mannhei.

Following these acquisitions, Union Investment’s logistics portfolio comprises 22 properties and projects worth some €1 bn. The Hamburg-based real estate investment manager said that it intends to further boost its exposure to logistics properties in the European core markets and double its logistics investment volume within three years.

The portfolio includes an existing property of some 24,000 m2 in north Dortmund. Another logistics property offering 17,000 m2 of space will be completed nearby in the near term. TST is developing a further new build, which is also part of the portfolio, in Bönen, some 25 kilometres east of the Dortmund site. The logistics centre comprises around 30,000 m2 and is nearing completion. Another development project is in Worms and offers around 49,000 m2 of rental space scheduled for completion by spring 2020. All new builds are expected to receive DGNB (German Sustainable Building Council) Gold certification.
 
'The Ruhr region is one of the most sought-after logistics areas worldwide. The outstanding infrastructure and high population density mean that conditions are highly favourable for logistics services,' said Stephan Riechers, head of investment management logistics at Union Investment. 'We already hold investments in the Rheinhessen region through other real estate funds. The TST development project provides us with a good opportunity to increase our exposure in the area.'

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