Grocery producer doubles capacity at Verdion value-add asset
Verdion has leased a second asset in Gallin to Erzeugerorganisation (EO) Mecklenburger Ernte, doubling the grocery producer organisation’s capacity close to its Hamburg markets.
EO Mecklenburger Ernte GmbH, an association of fruit and vegetable producers whose largest shareholder is a subsidiary of BEHR AG, originally signed a prelet for Unit 3 at Neu-Galliner-Ring 14-16 in July 2020. Its new 11,800 sq m facility is due to complete at the end of January, providing state-of-the-art warehousing and offices that will drive efficiency across the business, as well as social spaces, car and HGV parking.
In this new deal, EO Mecklenburger Ernte has now taken Unit 2 – a total of 10,595 sq m, which it was previously occupying on an interim basis – on a 10.5-year lease, effectively doubling its capacity at this location.
Verdion acquired the site in March 2019 for Verdion European Logistics Fund (VELF) 1, which is focussed on last mile and value-add logistics opportunities in Northern and Central Europe. In addition to Unit 1, let to DB Schenker, and Unit 2 which has now been leased long-term, its team identified the opportunity to intensify the site and deliver a third facility within the original footprint.
Valerie Setz, Asset Manager at Verdion, said: “With this new lease Mecklenburger Ernte can fully exploit the potential of this location, doubling its capacity and increasing efficiency within its supply chain. At the same time, the opportunity to secure an existing occupier for this sought-after asset has accelerated our plans, exceeding expectations for the fund.”
Florian Stöbe, Head of Investment – Germany at Verdion added: “This type of asset is exactly right for our focus on potential for value creation through technical innovation, development and active asset management. Reconfiguring, intensifying and improving brownfield sites for logistics requires deep sector experience if it is to be done well, but advantages not only for investors but for the local economy make it a very attractive focus.”
Gallin is one of eight assets secured for the €310 million fund. Earlier this year Verdion acquired a 10,200 sqm logistics property with significant expansion potential in Lützen, south of Leipzig, as well as its first two Danish assets with the acquisition of two logistics facilities in Greater Copenhagen totalling €30 million.