Curzon Global Partners this week won the race to buy 2m sq ft of sheds on the Continent.
Gazeley put its portfolio of 10 occupied warehouses on the market in May.
CGP, an affiliate of IXIS AEW Europe, will pay more than €170m for nine of the sheds in Germany, France and Belgium, while the 10th a 323,000 sq ft warehouse in Neiderbipp, Switzerland is to be sold to a separate investor.
CGP is buying its share of the portfolio at a yield below 7.75% the sector’s best prime figure to date.
The entire 2.5m sq ft portfolio, which was marketed by Jones Lang LaSalle, was initially expected to achieve around €160m. It attracted 70 initial bids, which were whittled down to a shortlist of four.
CGP, which has just raised €187m for the first closing of its eurozone value-added fund, will divide the Gazeley assets among its funds. One agent active in the market said: “Every time something comes up for sale, their name is on the list.”
Gazeley was keen to take profit at the top of the market and is expected to plough it into further schemes across the Continent.
It emerged last month that the developer had been in merger talks with its bigger rival, US-based ProLogis.
However, the deal was blocked by disagreements over Gazeley’s undeveloped landbank of 1,650 acres on 29 sites in the UK and continental Europe.
JLL refused to comment.
References: EGi News 29/07/05
