Verdion and Tritax EuroBox plc to partner on German logistics facility
Verdion and Tritax EuroBox plc, which invests in high-quality, large, sustainable, prime logistics real estate strategically located across Continental Europe, have today announced plans to speculatively develop a €29.9 million logistics asset in Germany’s Rhine-Ruhr metropolitan region.
The 23,346 sq m (291,256 sq ft) facility on a brownfield site between Essen and Duisburg will include 20,264 sq m (218,122 sq ft) of ground level logistics space with additional mezzanine and office accommodation that can be subdivided into four equal-sized units or let as a whole. Its location in Oberhausen offers easy access to national autobahns 3 and 42, with connections across the region as well as direct routes across Germany and into the Netherlands and Austria. Duisburg port, the largest inland port in the world, is only 15 minutes down the Ruhr river.
Tritax EuroBox will acquire the site and forward fund the development, while Verdion will develop the facility. It will be Tritax EuroBox’s 17th asset, and its eighth in Germany. For Verdion it is a further demonstration of its focus on German markets alongside activity in the Nordics, UK and CEE.
It is the companies’ second partnership aimed at bringing forward high quality logistics assets in strategic locations. In 2020 they completed a specialist food distribution facility for HAVI close to Hanover.
André Banschus, Executive Director at Verdion, said: “This is a site with considerable potential. Its location in the country’s largest conurbation with national and international transport links is a clear advantage, but it was the opportunity to draw on our team’s technical expertise to repurpose an underused site and create additional value that was particularly attractive. In Tritax EuroBox we have a partner that shares our commitment to high-performing logistics assets, and the new space we will bring to the market next year will be more efficient, more sustainable and better suited to occupiers’ requirements.”
Alina Iorgulescu, Assistant Fund Manager of Tritax EuroBox, commented: “We are delighted to continue to develop our relationship with Verdion, this being the second forward funded development we have worked on with them. We remain committed to building up a significant presence in prime areas of the German market which are characterised by strong tenant demand coupled with low vacancy levels and very limited land supply, leading to growing rents.
“This development, a brownfield regeneration project, demonstrates our ESG policy of replacing redundant properties with modern, sustainable, energy efficient buildings with significantly improved environmental credentials. The completed building, situated in one of the best logistics locations in Europe, will add to our growing portfolio of similar assets where we continue to create value for shareholders.”
The site will be developed speculatively to a high technical specification to ensure maximum operational efficiency, low occupational costs and long-term durability. Both partners are committed to creating an asset with strong ESG credentials, with the development designed to target a minimum certification of DGNB Gold, including a range of energy saving initiatives and staff wellbeing measures.
Construction is expected to start in the near term following the building permit process, and to complete in Q4 2022.