Verdion has secured fruit and vegetable producer organisation Mecklenburger Ernte for its latest project in Gallin, east of Hamburg.
The grocery business, whose majority shareholder is Behr AG, has signed a prelet for a new, 11,357 sq m development of warehousing, office and social space as well as car and HGV parking on the site at Neu-Galliner-Ring 14-16. Construction will start early next year with handover expected at the end of 2021.
In the interim, Mecklenburger Ernte has taken the existing Unit 2 at the site – a total of 10,595 sq m – while the new third unit is being constructed. Mecklenburger Ernte’s 12-year lease will transfer across to the new building on handover. BNP acted as intermediary in this deal. Unit 1 is let to DB Schenker.
Verdion acquired the asset in March 2019 as part of an ongoing £300 million investment programme for its discretionary fund, Verdion European Logistics Fund (VELF) 1. The fund is focussed on last mile and value-add logistics opportunities in Northern and Central Europe with potential for value creation through technical innovation, development and asset management activity.
- Last month Verdion acquired a 24,000 sq m warehouse in Roosendaal on the Dutch-Belgian border for €17 million in an off-market deal for the same fund. Located in an established logistics area between Rotterdam and Antwerp the building includes 18,000 sq m let to specialist logistics company Imperial Group, together with further space for occupation and an adjacent land plot with permission for a further 10,000 sq m of new build warehouse space.
- In Germany, it acquired a 10,000 sq m logistics building the Lower Rhine region town of Nettetal also for VELF 1. Under a three-year sale and leaseback deal with French logistics firm Egetra, the property is ideally situated for last mile logistics occupiers with potential for an additional 6,000 sq m of new development.
- These deals follow on from Verdion’s first investment for the fund in the Czech Republic, with the completion of a €17 million forward funding of a major project for UPS in Prague, consolidating three of the company’s fulfilment centres to create a 13,600 sq m national HQ and logistics hub on land adjacent to the City Airport.
Florian Stöbe, Head of Investment Germany at Verdion, says: “Being able to provide existing space as well as launching a new strategic development on the same site showcases our skill of investing in locations that require experienced asset managers. With the transitional lease, we enabled Mecklenburger Ernte to operate and expand their business immediately from existing space while lining up a bespoke new building next door for longer-term occupation.
“Strategic locations like this one are the focus of the new fund. We are increasingly registering a rise in demand both in the stationary grocery sector as well as in online delivery, which we intend to leverage in the coming months with further investments by VELF1.”