Henderson buys first property for German logistics fund

Henderson Global Investors has bought the first property for its German Logistics Fund, which announced its first closing in October, raising €90m.

The price of the property has not been disclosed, but Henderson says it represents an initial yield of around 8%. It is a 19,000 sqm distribution centre based in Bad Dürkheim in Germany.

The asset was developed by Gateway Real Estate in August this year. It is let to Europe’s leading producer of light alloy wheels – the Uniwheels group – on a long lease.

The firms says it fits well within the fund’s criteria for existing, good quality logistic assets in top locations throughout Germany.

The logistics fund is a partnership between Henderson’s German property business and Palmira Capital Partner, a specialist in logistic real estate. Palmira acts as adviser during the investment process and assists with the management.

Investors into the fund are predominantly German insurance companies and pension funds, as well as one Austrian institutional investor.

The fund remains open to institutional investors. Its target return is 8.5% with a 40% gearing provision.

Mathias Leidgeb, partner with Palmira Capital Partners, commented: “The strategy for the Fund involves the acquisition of existing, proven schemes with secured leases already in place. This means that the benefit of the low risk associated with newer build assets is retained, but the premium pricing is avoided.

“In this respect, Bad Dürkheim was an excellent fit with the strong covenant strength of Uniwheels and a long lease already in place.”

Henderson and Palmira have three further assets in due diligence which they hope to complete in the New Year.

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