18 September 2019
Union Investment acquires logistics property portfolio from TST
Portfolio comprises one existing property and three development projects in the Ruhr and Rheinhessen regions / Acquisition for Unilmmo: Europa
Union Investment has agreed to buy a logistics property portfolio from German logistics service provider Trans Service Team (TST). The portfolio has a total rental area of approximately 120,000 sq m 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. The purchase price is some EUR 120 million, subject to all contractually agreed conditions being met.
The existing property comprises some 24,000 sq m of rental space and was constructed in 2016 on Gneisenauallee in north Dortmund. Another logistics property offering approximately 17,000 sq m of space will soon be completed nearby. TST is developing a further new build, which is also part of the portfolio, on Siemensstraße in Bönen, adjacent to the A2 motorway, some 25 kilometres east of the Dortmund site. The logistics centre in Bönen comprises around 30,000 sq m and will likewise be completed soon.
“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. 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.”
Stephan Riechers, Head of Investment Management Logistics
TST’s development project in the Rheinhessen region is planned for Worms. The property on Mittelrheinstraße in Worms will have approximately 49,000 sq m of rental space and is scheduled for completion by spring 2020. All new builds are expected to receive DGNB (German Sustainable Building Council) certification in Gold. The existing property in Dortmund already has a DGNB Gold certificate.
Following these acquisitions, Union Investment’s logistics portfolio comprises 22 properties and projects worth some EUR 1 billion. The Hamburg-based real estate investment manager intends to further boost its exposure to logistics properties in the European core markets and double its logistics investment volume within three years. Unilmmo: Europa currently comprises real estate assets worth EUR 12.7 billion and up to now held only one logistics property, in Heddesheim near Mannheim. As an additional benefit, the acquisition of the TST portfolio allows the fund to maintain the desired allocation to Germany.
For Union Investment Real Estate GmbH