28 Sep 2016
M7 Real Estate acquires 184,200 sq m central logistics warehouse in Unna
London, 28 September 2016 – M7 Real Estate, the pan European investor and asset manager, announces that in joint venture with a well-capitalized U.S. investment manager, it has purchased a central logistics warehouse in Unna, near Dortmund in North Rhine-Westphalia from international private equity funds. M7 will take over the asset management of the property.
The facility was constructed between 1988 and 1995 on a 492,000 sq m site. It comprises four interlinked halls and a high-bay warehouse, providing 172,000 sq m of warehouse space and 12,200 sq m of office and utility space. The property has its own railway siding, including a gantry crane and is approximately three km from the nearest junction on the A1 and the Kamener Kreuz intersection of the A1 / A2 and A44 motorways. The Unna area is a central hub for logistics infrastructure in the Ruhr region due to its strong transport links. The sole long-term tenant is Karstadt Warenhaus GmbH, which has sublet the entire property to a market leading provider of logistics solutions.
Following this acquisition, M7 Real Estate now has €370m of assets under management in Germany, comprising 65 properties with a total floor area of circa 680,000 sq m.
Lohnbach Investment Partners, Frankfurt, the former asset servicer of the warehouse, provided sell-side advice. Berlin Hyp provided debt facilities. Simmons and Simmons provided legal advice to M7 Real Estate.
Alyssa Huse, Managing Director at M7 Real Estate in Germany, said: “We continue to see opportunities both for investment and income growth across the commercial real estate sectors in Germany. This property is a strong endorsement of this as it offers good fundamentals through its location in a high demand logistics area, attractive income yield and strong tenant covenant.”