12 February 2020
Union Investment acquires Logistrial Real Estate from GARBE
• Purchase of company and associated portfolio comprising 19 logistics properties with a total area of around 580,000 square metres
• The fully let properties and development projects are located in Germany, Austria, France and the Netherlands
Union Investment has acquired Logistrial Real Estate AG from GARBE Industrial Real Estate. The acquisition includes all the shares in Logistrial Real Estate AG. This is associated with the purchase of a logistics portfolio comprising 13 existing properties and 6 development projects. The total floor area is approximately 580,000 sq m. The purchase price is around EUR 800 million. Using its integrated platform, GARBE Industrial Real Estate will handle letting, property management and asset management of the existing portfolio and also of the new properties upon completion. Logistrial Real Estate AG was established in 2019 with the intention of creating a logistics property portfolio and then putting both the company and the portfolio up for sale in the capital market.
The fully let existing properties and the ongoing development projects will be added to Union Investment’s two open-ended real estate funds UniImmo: Europa and Unilmmo: Global. The 19 logistics properties are located in Germany, Austria, France and the Netherlands. Fifteen of the properties, which represent an investment of 75 per cent of the purchase price, are earmarked for the UniImmo: Europa portfolio, while four properties will be added to the stock of UniImmo: Global.
“The acquisition of the Logistrial portfolio is an important step towards strategically expanding our logistics portfolio and diversifying it across the leading European logistics markets. We are planning further steps of this kind, including portfolio acquisitions and single asset deals with developers, portfolio managers and owner-occupiers as part of sale and leaseback solutions, for example. Thanks to our excellent working relationship with Garbe, we were able to negotiate the portfolio transaction very efficiently and ensure beneficial solutions for both sides.”
Prior to the acquisition of Logistrial Real Estate AG, Union Investment held 25 logistics properties worth around EUR 1.2 billion. In autumn 2019, the Hamburg-based real estate investment manager announced its intention of at least doubling its logistics portfolio and diversifying it internationally within Europe. A planned logistics property in the Rotterdam area with 53,500 sq m of space was acquired shortly afterwards. Union Investment has 12 European national markets in its sights for future logistics property acquisitions.
Christopher Garbe, managing director of GARBE Industrial Real Estate GmbH, commented: “As a result of Union Investment’s attractive offer and the prospect of being able to continue managing the properties in the long term, we decided to accept the offer and have successfully completed this complex transaction over recent weeks. We are delighted to have found a competent partner with a long-term focus in Union Investment.”
GARBE Industrial Real Estate currently has assets under management worth some EUR 2.7 billion. These are spread across a number of products, including 12 logistics funds and various asset and property management mandates. GARBE Industrial Real Estate’s commercial and logistics properties and development projects are located in Germany, France, Austria and the Netherlands and provide total rental space of around 4.2 million sq m.
For Union Investment Real Estate GmbH