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Patrizia buys pan-European logistics portfolio for around €1.2B
06 December 2019 | Vanessa Sousa

Patrizia AG announces that it is acquiring a pan-European portfolio of 42 logistics assets from BentallGreenOak for around 1.2 billion euro on behalf of a logistics fund, backed by a club of institutional investors, comprising PFA Pension in Denmark and Public Officials Benefit Association (POBA) in South Korea as well as PATRIZIA Logistik-Invest Europa II (PLIE II).

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The portfolio totals 42 logistics properties in some of the most central junctions in Europe, and the investments are placed in the following countries: France (17), the Netherlands (3), Italy (11) and Spain (11). This set of assets comprises over 1.4 million sqm of existing lettable area as well as a further 138.000 sqm of lettable space for the three developments in Italy and Spain. Of the 42 acquired assets, 39 are yielding properties as well as three forward purchased new logistics developments in Italy and Spain which are partially pre-let.

Of the 11 assets located in Spain, 6 are located in Madrid, 3 in Valencia, one in Barcelona and another in Bilbao, according to what newspaper Expansión reported from market sources. The last asset is still under construction and should start operating next year.

The properties are located in Europe’s key logistics corridors and are close to 90% income producing, let to a reputable and diverse tenant base of over 30 national and international businesses from the ecommerce, manufacturing and third party logistics sectors. Key tenants include Carrefour, Aldi, Dachser, DHL, Easydis, and Geodis. The overall portfolio weighted average unexpired lease term (WAULT) is over seven years.

Rob Brook, Head of Alternative Investments at PATRIZIA, commented: «This purchase provides immediate exposure to a portfolio of institutional quality and scale across four separate markets, which will deliver robust, reliable returns to our investors. Furthermore, with strong structural tailwinds and the highly attractive fundamentals of the logistics sector, we expect there to be additional potential opportunities for the portfolio to cover growth markets and to diversify the pan-European logistics platform further, due to a relatively low base of e-tailing penetration across Europe in contrast to some specific markets like the UK, Germany and The Netherlands».

Anne Kavanagh, Chief Investment Officer at PATRIZIA, added: «With this transaction, we at PATRIZIA have once again demonstrated our expertise and ability to structure large-scale complex portfolios on behalf of a club of institutional investors, thanks to our strong local network across Europe. To complete a deal of this magnitude by bringing three key investors together is testament to our proven track record to spot strategic opportunities and execute them».

«With this investment with two recognised partners, we have ensured that the pension savers will benefit from the stability offered by property investments over time while also benefitting from the growth within logistics and e-commerce. International partnerships are very interesting because our joint knowledge and competences provide the best foundation for making such a large investment in an international market», said Michael Bruhn, Head of Real Estate in PFA.

Press Released By Patrizia and PFA Pension | Last Update at 12:18 p.m. 11/12/2019