Bahrain > News and Events > News Detail

News

CBRE Completes Forward Sale Of DHL-Developed Logistics Asset In Germany

CBRE today announced that it has advised DHL Real Estate on the sale of the 15,103 sq m warehouse facility it is developing in Leipzig, Germany to international property fund manager, Cordea Savills.

The deal marks the start of a program of direct development by DHL Real Estate in EMEA, and an exciting evolution for the activity of third-party logistics occupiers, in this new development cycle.

Leipzig is a strategic location within the DHL European network and the scheme has the capacity of delivering around 67,000 sq m of logistics space in total. On its completion in July, the unit will be let to DHL on a 10-year lease.

Prime logistics space across the EMEA region continues to be in very short supply, and this deal reflects a wider trend in which industrial and logistics occupiers are required to look at other options such as the design and build, and pre-let development in the absence of quality available space.

James Markby, Head of European Industrial and Logistics Investment, CBRE, said: “There has been strong interest from investors given the quality of this real estate, the strength of DHL, and the positive outlook for the logistics sector. With a yield profile of around 7% for prime stock, logistics assets provide investors with strong income distribution in a low growth environment. Backing developers and occupiers who are able to deliver a good pre-let pipeline of development can enhance performance returns further, while many of the development risks can be removed, or at least managed, and priced effectively.”

Following this success, CBRE has also been instructed by DHL Real Estate to forward sell a 42,000 sq m warehouse development in Monchenglachbach, Germany, with additional capacity for a further 42,000 sq m extension. DHL will again develop the unit, and then operate the facility on behalf of a major retail customer, who will take a 10-year “triple-net” lease on completion.

Published on: 30 04 2012