Nuveen Real Estate continues its investment into the European logistics market, acquiring a newly developed industrial park in Magdeburg
Nuveen Real Estate, one of the world’s largest investment managers, has acquired a development, as part of a forward deal, on behalf of its European logistics platform. The seller was the project developer Panattoni.
Located north of Magdeburg, the industrial distribution centre, covering an area of around 87,000 sq m (c. 936,000 sq ft), is being built for the logistics provider Dachser. Completion is scheduled for November 2020. The purchase price was over €30 million.
The asset is split into two separate buildings with a total rental space of 42,000 sq m (c. 452,000 sq ft). Once completed, the logistics park will be one of the most modern in the region. It is ideally connected by the A2 motorway, the most important east-west traffic axis in Northern Germany. It also provides a connection between the Dutch and Belgian North Sea ports and the Eastern European countries. With the Elbe, the Mittellandkanal and the Elbe-Havel-Kanal, Magdeburg is also well connected to the national inland waterways.
"With the acquisition in Magdeburg, we have secured another state-of-the-art property for our European Logistics platform, which also benefits from excellent transport connections and is leased, long-term, to an established tenant. For these reasons we believe that the asset should provide strong returns for our investors over the long-term.
Thorsten Kiel, Head of European Logistics at Nuveen Real Estate, adds:
"Logistics properties can offer investors long-term growth and earnings. So far this year, Nuveen’s European logistics platform has already invested around €250 million in industrial assets, with a further €250 million currently in due diligence or already under construction. We will continue to expand intensively in this sector and plan several additional acquisitions throughout 20'H2."
Nuveen’s global logistics portfolio represents c.€15.4 billion assets under management, as at 31 March 2020.Nuveen Real Estate was advised by EY (tax), Graf von Westfalen (legal), Orange recon GmbH (technology) and Ambiente (environment).
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