European Cities Fund acquires its first logistics asset in Venlo, the Netherlands
TH Real Estate has acquired a distribution centre in Venlo, Netherlands, on behalf of its European Cities Fund, from Next Level Real Estate BV for c.€70m.
The asset totals 75,493 sq m (812,600 sq ft) set up as four units. Phase 1, which includes units one and two of approx. 40,838 sq m was completed in November 2017. The construction of units three and four (Phase 2) of approx. 34,655 sq m (373,023 sq ft) has been delivered in June this year. Discussions are underway regarding a potential third phase, which would provide a further 43,427 sq m (467,444 sq ft) of space. The asset is let to an international retailer and the logistics operations has been taken care of by Nunner Logistics. The tenant leases the property for 15-year lease, which plans to use the centre as its main distribution hub, serving its fast-growing e-commerce network across the Netherlands and Western Europe.
Located in the province of Limburg, the distribution centre is in one of the most mature and established logistics markets in Europe. The asset acts as a European hub, situated in the logistical hotspot between the Netherlands’ main ports and Germany. It has good multimodal connections via water, rail and road, ensuring optimum accessibility, and there is planning consent for construction of the biggest inland rail terminal in the Netherlands, expected to be operational in 2019.
Liz Sworn, Co-Fund Manager for the European Cities Fund, comments: “Being the first logistics asset acquired for the Fund, Venlo is a good diversifier. Its Grade-A quality, strong location, large lot size and tenant covenant strength, make it an exciting addition to the Fund, enhancing returns and diversification for our clients.”
Thorsten Kiel, Head of European Logistics, comments: “The asset’s location is within the top logistics hub in Europe. The demand for logistics space in the area, makes it an ideal fit within our €2.6bn logistics portfolio in Europe, in which we invest in regions with sustainable demand drivers, and assets that will be resilient in Tomorrow’s World. ”
The European Cities Fund is part of TH Real Estate’s resilient global cities series, which applies strategies designed to focus on diversification, income and long-term capital growth. These strategies focus on investing in high-quality assets in leading cities that are well-positioned in terms of long-term structural trends, including demographic change, urbanization and technology.
Venlo is the 10th acquisition for the Fund, and the second asset in the Netherlands, following the acquisition of the Warehouse, a prime office asset located in Amsterdam.
TH Real Estate was advised by Loyens & Loeff, Malcolm Hollis, EY, Cording, and De Lobel & Partners. The seller was advised by CMS and TLF Real Estate.