Warburg HIH buys German shed portfolio, including 3 Amazon warehouses

German fund manager Warburg-HIH Invest has acquired a portfolio of four new-build logistics warehouses in Germany from local developer Complemus Real Estate.

Financial details were not disclosed.

The portfolio consists of four modern single-tenant assets located in North Rhine-Westphalia and Rhineland-Palatinate, fully occupied on long-term leases.

'This investment in the promising last-mile segment secures assets of new-build quality and alternative use potential for our fund that are occupied by tenants of good covenant strength, such as Amazon,' said Andreas Strey, senior fund manager at Warburg-HIH Invest.

Three of the assets are Amazon distribution centres occupied on lease terms of 15 years, the fourth asset being a distribution warehouse in the Rhineland. They have a combined lettable area of more than 33,000 m2.

'Demand for logistics facilities in Germany is permanently strong. The acquisition of this portfolio lets our investors buy into the dynamically growing market for courier, express and parcel services, the so-called CEP market,' said Carsten Demmler, head of capital management at Warburg-HIH Invest.

'This industry has been virtually unaffected by the current economic dip and offers secure long-term cash flow returns to our investor,' Demmler added. 'We are currently in talks with logistics developers regarding further acquisitions.'

The assets were acquired for the Warburg-HIH Deutschland Logistik Invest fund, which remains open for additional equity contributions by institutional investors, according to the firm.

The fund is targeting a total volume of €500 mln, while aiming at €300 mln of equity capital, of which around half has been achieved to date.

Matthias Dötsch and Andreas Preusser, managing directors of developer Complemus, added: 'We serve the demand-side market for logistics real estate with alternative use potential in attractive locations in German conurbations. We succeeded in meeting the sophisticated requirements of our client Amazon, including in regard to location requests and implementation speed.'

Legal due diligence on the buyer side was conducted by Norton Rose Fulbright, while Arcadis Germany was responsible for technical due diligence. The seller was advised on legal matters by CBH Rechtsanwälte.



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