Press Release – CoStar – 90 North sells Volkswagen logistic centre in Germany

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90 North Real Estate Partners has sold its VW logistics centre in Germany, for €52m to Israeli fund manager MiDeal Group, CoStar News can reveal.

The 972,000 sq ft spare parts logistics property, located in Volkmarsen, near Kassel, is one of Germany’s key automotive hubs and is leased to and operated by Rudolph Automotive Logistik, a long-standing logistics partner of the Volkswagen Group.

The sale is 90 North’s third this year and second in continental Europe.

Lisa Amin, senior investment manager of 90 North who advised the seller, Becker Property Investment Company, on the sale said: “We are pleased with the profitable outcome of this investment which demonstrates the quality of our advice and asset selection.

“We will continue to focus on maximizing the value of the current investment portfolio and on introducing new investment opportunities to our investors. In particular, 90 North will continue to pursue opportunities in Germany and elsewhere in Continental Europe.”

Nick Judd, Founder and Head of investment at 90 North, said: “The sale of the Rudolph property follows a period of very attractive income returns from the property. In the current investment climate, where the global ‘hunt for yield’ continues and there is a limited supply of high quality assets, we were naturally reluctant to recommend a sale. However, the sale price achieved was very attractive.

This is the third exit 90 North has achieved in 2017 following the recent exits of the Siemens gas turbine HQ in Lincoln, UK and Onninen logistics property in Oslo, Norway. In total, we have now concluded €135,000,000 of profitable exits in addition to recent acquisitions since the beginning of 2017”.

Raviv Koren, managing partner at MiDeal Group said: “This acquisition fits with MiDeal Fund’s strategy to purchase German income producing properties in good locations with strong tenants. Such acquisitions enable MiDeal Fund to distribute an attractive annual fixed income cash flow to its investors”.

Arzan Wealth acted as Strategic Advisers to Becker Property Investment Company Limited. Jones Lang LaSalle acted as sell-side advisor and Simmons & Simmons acted as legal advisors to the Seller.