Deutsche Pfandbriefbank AG (pbb) has arranged a refinancing facility of EUR 42 million for the Bad Hersfeld Ost logistics centre. The funds will be used by Barings to repay an existing development financing for the property in question. This transaction underscores pbb's continued commitment to the logistics property sector and its collaboration with established partners in the investment field.
The Bad Hersfeld Ost logistics centre offers a total area of approximately 72,000 square metres. The property, located in Herleshausen, is characterised by its fully let capacity and is considered circular and easily divisible. Its convenient transport links to the A4 motorway are a relevant location factor, increasing its attractiveness for logistics users.
Parties Involved and Market Positioning
Gerhard Meitinger, Head of Real Estate Finance Germany at pbb, commented on the agreement after the contract was signed. He emphasised the importance of expanding engagement in the logistics property sector and the collaboration with Barings, an established player in the investment market. Meitinger highlighted that the financed property meets modern requirements for logistics locations, which is relevant for users.
On Barings' side, Daniel Köhler, Head of European Real Estate Capital Markets, commented on the extended business relationship with pbb. According to him, in addition to classic logistics, the multi-tenanted light industrial (MLI) sector is also an investment focus at a European level for Barings. Therefore, they are constantly looking for suitable financing partners for logistics properties.
Market Environment and Asset Class
The logistics industry continues to experience high demand. Properties in sectors such as logistics and multi-tenanted light industrial remain target areas for investments and financing, as they play an essential role in the supply chain and industrial production. The refinancing by pbb for Barings illustrates the continued liquidity and interest in high-quality assets in this segment. The choice of location and the structural features of the property in Herleshausen are criteria that underpin the value and long-term perspective of the asset.
