International Industrial Properties (IIProp), a logistics platform focused on investing in industrial and logistics space, owned by Madison International Realty and Griffin Capital Partners, sold a single-let logistics property in Germany. This is the company's second transaction in Germany, following its first portfolio sale in June 2022.
The fully-let property encompasses a total area of 13,927 sqm of GLA in Baden-Württemberg region, city of Neuenburg am Rhein. The project is located next to the A5 highway, which provides connectivity to the metropolitan areas of Basel, Freiburg, Strasbourg, and Stuttgart, and is part of the Upper Rhine logistics hub.
Nebil Senman, Co-Owner and Managing Partner at Griffin Capital Partners, says: “We see Germany as a key market in our international expansion. After the multiple successes of our pure Polish logistics platform - ELI, we have decided to expand our operations to other European markets and have acquired multiple logistics developments in Germany, France, the Netherlands, Austria, Italy and Spain. Despite the challenging market environment, the disposal of the logistics park marks another successful transaction in Germany this year, our third within less than 18 months. Beginning in 2023, we have expanded our German footprint by originating a deal and acquiring the majority stake in the Berlin based residential and office developer – Bauwert AG, together with Wing.”
The logistics park in Neuenburg is a single-let property anchored by Hornbach Baumarkt AG, which operates DIY megastores in Germany and DACH region. The asset handles the distribution network of the tenant Swiss retail chain. The investment was developed in compliance with modern environmental standards – the DGNB Gold Standard certification procedure is currently underway. Besides the green certificate, the warehouse enjoys enhanced sustainable solutions such as low-emission photovoltaic systems, greenery on the roof, a rainwater recycling system, and electric vehicle charging stations.
Diana Shieh, Managing Director at Madison International Realty, adds: “We are delighted that together with our long-time partner Griffin we were able to complete another transaction in the European logistics market. We believe that in the coming months we will capitalize further on our successful cooperation by delivering state-of-the art, sustainable logistics properties in the key European markets.”
Maciej Dyjas, Co-Owner and Managing Partner at Griffin Capital Partners, comments: “Logistics still stands at the core of our business. Despite an uncertain and challenging macroeconomic environment, there is still significant demand for quality warehouse space in prime locations. Our IIProp expansion is based on this very premise. The disposal of the Neuenburg am Rhein project is yet another testament to our ability to deliver a blue chip prime asset covenant that attracts core capital at an excellent price point despite volatile market conditions.”
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