Logistics: good returns and high occupancy
The logistics sector was expanded during the 2006/07 financial year, with both IMMOWEST and IMMOEAST closing a number of interesting acquisitions. Transactions in the west focused exclusively on fully let investment properties, while activities in the east were comprised primarily of development projects.
Investments in the logistics sector are currently attractive for two main reasons: the average level of occupancy is significantly higher than office properties and returns exceed the levels realisable on office and retail objects. As a rule, the difference between the top returns for offices and returns for fully let logistics properties in good locations range from one to two percentage points. Market analyses by leading property service companies point to the logistics sector as the most attractive market for investors in Western Europe.
Investments on West European markets in this sector were located in Germany and Switzerland. They were carried out chiefly by the Deutsche Lagerhaus subsidiary and are described in detail in the section “Subsidiaries and investments in other companies”.
The largest single logistics project in the IMMOEAST segment was started in Ukraine. The Alacor Logistics Park City and Alacor Business Park City will be built together with the Ukrainian developer Alacor, and have approx. 211,000 sqm of letable space. The investment volume for these two projects in Kiev totals EUR 160 million.
The Pantelimon logistics centre, which is located in the northern section of the Romanian capital of Bucharest, was acquired during 2006/07. This facility has 52,000 sqm of letable space and will be completed in autumn 2007. It represents the first in a portfolio of ten logistics centres that will be developed together with the European Future Group. Plans call for the development of 400,000 to 500,000 sqm of letable space and an investment of EUR 300 million.
Development of logistics space in 1,000 sqm
As of 30.4.2007
Investments in the logistics sector are currently attractive for two main reasons: the average level of occupancy is significantly higher than office properties and returns exceed the levels realisable on office and retail objects. As a rule, the difference between the top returns for offices and returns for fully let logistics properties in good locations range from one to two percentage points. Market analyses by leading property service companies point to the logistics sector as the most attractive market for investors in Western Europe.
Investments on West European markets in this sector were located in Germany and Switzerland. They were carried out chiefly by the Deutsche Lagerhaus subsidiary and are described in detail in the section “Subsidiaries and investments in other companies”.
The largest single logistics project in the IMMOEAST segment was started in Ukraine. The Alacor Logistics Park City and Alacor Business Park City will be built together with the Ukrainian developer Alacor, and have approx. 211,000 sqm of letable space. The investment volume for these two projects in Kiev totals EUR 160 million.
The Pantelimon logistics centre, which is located in the northern section of the Romanian capital of Bucharest, was acquired during 2006/07. This facility has 52,000 sqm of letable space and will be completed in autumn 2007. It represents the first in a portfolio of ten logistics centres that will be developed together with the European Future Group. Plans call for the development of 400,000 to 500,000 sqm of letable space and an investment of EUR 300 million.
Development of logistics space in 1,000 sqm
As of 30.4.2007
print page
recommend page