Hansainvest Real Assets GmbH intends to significantly expand its logistics property portfolio. Logistics assets with a volume of €200-300 million will be acquired by the end of 2019. The acquisitions will be concentrated on the core markets of Germany, Benelux and the United Kingdom. Selected properties may also be acquired in France, the Nordics, Spain and Poland. A total of between six and eight properties will be acquired.
Nicholas Brinckmann, Chairman of the Management of Hansainvest Real Assets GmbH, comments: “We intend to double our logistics exposure with the planned acquisitions. As an institutional investor, logistics properties are attractive because they continue to generate significantly higher yields than core office and retail properties. The spread is currently still around 150 basis points.”
Philipp Middendorp, Head of Logistics Acquisitions at Hansainvest Real Assets, explains: “In terms of risk classes, we intend to acquire core and core-plus properties. We will also pay close attention to the potential alternative uses of the properties. We intend to acquire primarily traditional logistics assets, including warehouse, distribution and transhipment properties. Alongside portfolio properties, we will also focus on acquiring development projects.”
In the same way, as for all property segments, logistics yields have fallen due to the high level of demand. “There is a huge demand for logistics properties among national and international market participants. The only way to continue to realise attractive investments in this environment is with a broad market approach. In particular, sale-and-leaseback transactions are one way of achieving this, as they typically allow for longer, investor-friendly leases (+10 years),” Middendorp adds.
The logistics market is also attractive to investors thanks to its stable rental development, and this will remain the case in future. For example, demand for space in Germany remains high. Although there is a relatively large volume of new construction activity at present, demand continues to outstrip supply, particularly at established logistics locations. “This is why we are forecasting constant to slightly rising rents,” Middendorp adds.
Logistics properties have long been an important element of the Hansainvest Real Assets property portfolio. The asset manager currently has 15 logistics properties (14 portfolio properties and one development project) in five European countries (Belgium, Germany, Finland, the Netherlands and the United Kingdom) with a total volume of around €250 million. This means that logistics currently account for 5.2 percent of the assets under management at Hansainvest Real Assets.