Slough Estates International (SEI) is to acquire a €163.2m (£110m) logistics portfolio and related land bank from German retail giant KarstadtQuelle AG through a sale and leaseback transaction.
The portfolio consists of 260,000 m2 (2,798,616 sq ft) of let warehouse accommodation, 63,000 m2 (678,126 sq ft) of let office accommodation and 53 hectares of development land, producing a total rent income of €13.1m (£8.8m) per annum.
The main development properties are in Berlin, Hamburg, Hanover, Dusseldorf/Essen and Alzena, and all have potential for the provision of business park or logistic facilities.
KarstadtQuelle, which had gross sales of €13.4bn (£9.05m) last year, is selling these properties as part of a Groupwide financial restructuring.
DHL has taken over the contracts at five of the logistics centres.
SEI’s Managing Director in Europe, Walter Hens, said: “This acquisition provides significant income, much of it secured until 2017, and unlocks substantial development opportunities.”
“It combines the strength of our expertise as an established developer in the industrial market in Germany with a strong cash flow generated from the leased back element.
“Our General Manager in Germany, Dr Udo Titz, and his team now have a major opportunity to take our existing German operations onto another level.’
Ian Coull, Slough Estates’ Chief Executive, added:
“This transaction plays to our strengths and builds on our growing presence in this region.
“It is an excellent fit with our strategy and takes our focus on flexible business space further into Continental Europe, in particular reinforcing and building on our position in the key German market.”
References: EGi News 08/12/05
