Real estate private equity firm HighBrook Investors has announced two new additions to its European urban logistics platform, CityLink. Following the acquisitions in Castrop-Rauxel and Almere in the Netherlands, the portfolio increases by more than 10,000 square metres of lettable space. This brings the CityLink portfolio to a total of 143 commercial properties across European and US growth markets.
Property features in Castrop-Rauxel and Almere
In the German market, the investor secured a freehold property at Industriestraße 25 in Castrop-Rauxel. The site provides 4,669 square metres of lettable space, which includes 2,000 square metres of outdoor area. The site borders an additional 10,000-square-metre plot offering development potential for industrial outdoor storage. The entire usable space is leased to contract logistics provider Müller - Die Lila Logistik, which provides warehousing, assembly and fulfilment services for industrial clients from the site.
In the Netherlands, the purchase was completed via a sale-and-leaseback transaction for the property at De Steiger 71-73 in Almere. The asset comprises 6,453 square metres of lettable space, including 950 square metres of outdoor area. The seller and long-term tenant is Borgh, which manufactures and distributes fastening materials and tools for the construction and industrial sectors. The concluded lease has a fixed term of seven years.
- —Industriestraße 25, Castrop-Rauxel: 4,669 square metres of lettable space with adjacent expansion land
- —De Steiger 71-73, Almere: 6,453 square metres of lettable space under a sale-and-leaseback structure
- —Tenant structure: Müller - Die Lila Logistik (nationwide contract logistics) and Borgh (fastening technology)
- —Total portfolio: Expansion of the European CityLink platform to 143 existing assets
Market drivers and planned portfolio expansion
Both acquisitions were negotiated off-market. Maximillian Jung, Vice President at HighBrook Investors, emphasised that the assets were secured via off-market transactions at attractive entry yields and significantly below current replacement cost. In both submarkets, the supply of space is structurally constrained. Due to the combination of land scarcity, high construction costs and increased financing rates, little relief from new development projects is expected in the near term.
For this reason, the company anticipates a sustained stable to positive rental growth trend for functional urban logistics space. HighBrook Investors intends to focus the platform's strategy on Germany over the next twelve months and tangibly expand its domestic portfolio to reinforce its market position.
