Savills Investment Management (Savills IM), an internationally active real estate investment manager, has acquired two logistics properties in Dettelbach, Lower Franconia, near Würzburg, for its European Logistics Fund 3 (ELF 3). The acquisition was part of an off-market portfolio transaction, with AEW acting as the seller. All parties agreed not to disclose the purchase price conditions.
With this latest transaction, the total portfolio of ELF 3 increases to 21 logistics properties spread across seven European countries. This is the fund's second acquisition in Germany; a logistics property in Verden, Lower Saxony, was previously acquired. Following this transaction, the fund's German portfolio now comprises three properties, further strengthening the desired country diversification of the fund's portfolio. The entire ELF 3 portfolio boasts an occupancy rate of almost 95 per cent.
Property Characteristics and Strategic Importance
Both properties acquired in Dettelbach are fully let and comprise a total rental area of approximately 97,600 square metres. The long-term leases are with a German fashion company and a globally active logistics service provider. The Grade A logistics properties were completed in 2023 and are located in the Dettelbach commercial area. Their location at the intersection of the A3 and A7 motorways ensures excellent connectivity to central German north-south and east-west transport axes, making them particularly suitable for national and international distribution processes. The properties were developed on a brownfield site and hold DGNB Platinum and DGNB Gold certifications, respectively, highlighting their sustainability standards.
Sebastian Schambeck, Associate Director Portfolio Management at Savills IM, emphasised that the off-market acquisition secures two high-quality logistics properties with long-term leases at a strategically important logistics location in Germany. He highlighted the modern facilities, ESG characteristics, and excellent connectivity of the properties. At the same time, the fund's German allocation is being systematically expanded, thereby increasing portfolio diversification. He added that further attractive acquisitions for the fund are in preparation.
Tim Ulrich, Head of Transactions Germany, Austria & Switzerland at Savills IM, described the transaction as one of the largest logistics transactions in Germany this year. He explained that attractive investment opportunities can be realised even in a challenging market environment, which is the result of intensive due diligence and a disciplined selection process. He also mentioned a well-filled acquisition pipeline across various sectors and saw initial signs of regained momentum in the transaction market. For capital to invest, Savills IM is currently looking for investment opportunities across Europe in the logistics, living, food retail, and prime office segments.
Advisory Parties
- —Noerr, BNP Paribas RE, Kroll REAG, BDO and GMA advised Savills IM.
- —AEW was advised by GSK Stockmann and Cushman & Wakefield.
