Evidence of continuing appetite for logistics and warehousing property across Europe has been highlighted, with CB Richard Ellis completing on more than 66 million of deals as part of two transactions in the Netherlands.
These transactions follow the successful amalgamation earlier this year of the investment, leasing and development arms of CBREs Cross Border Industrial and Logistics team, creating a fully integrated cross-border service which fulfils the needs of clients as both investors and occupiers.
In the first transaction, acting on behalf of Kenmore Property Group, CB Richard Ellis has sold a major, reversionary asset at Veghel, near Eindhoven in the south-east logistics hub of the Netherlands to WDP (Warehouse de Pauw) for approximately 31.7 million. The property is let to Kuehne & Nagel until 2013 and comprises around 67,225 sq m of accommodation built between 1986 and 1996.
The second transaction was undertaken by CB Richard Ellis on behalf of Goodman International, with the sale of two properties in Almere and Nijmegen to Deka for approximately 34.8 million. Built in 2003, the Almere property covers a total area of almost 25,000 sq m, and is let to TYC Europe BV until 2013. The Nijmegen property was built in 2001 and provides approximately 31,000 sq m of accommodation let to two tenants, Bikeurope and Saphin.
David Turner, Head of CB Richard Ellis Cross Border Industrial & Logistics team said: Although the market is a tougher place right now, there is still relative strength in the logistics sector. Against a background of generally weaker activity in European property investment, turnover in the industrial market in continental Europe was only 3% lower in the first half of 2008 than in the same period last year. The fundamentals of pan-European logistics remain strong and largely unaltered hence there is an identifiable demand for quality warehousing in prime logistics locations, underpinned by strong covenants.
The Netherlands represents one of continental Europes core logistics hubs and these two transactions reflect pan-European investors long-term confidence in the sector. CBREs cross-border group and local Dutch office have worked closely together on both transactions to deliver local insight and international advice to clients in a turbulent market.
The creation of our integrated European Industrial & Logistics team at the beginning of this year has placed us in a unique position to deliver best-service in this market. Being able to offer a completely integrated approach to investment, leasing and development across Europe has helped our clients to take a more strategic view of their networks.