The first deal is the acquisition of the remaining six logistics units at MG Park Greve in Copenhagen from MG Real Estate, which comprises 52,177 sq m of warehouse space as well as 2,590 sq m of office space. One logistics unit has already been completed, with five more due to be developed. This completes the acquisition of the park, as the firm previously acquired five units comprising 51,903 sq m, which are fully let to five different tenants. The total deal at MG Park Greve comprises over 100,000 sq m.
Secondly, CBRE IM has further expanded the joint venture with project developer and investor, MG Real Estate, with units 3, 4 and 5 at MG Park Fredericia, comprising 26,789 sq m of warehouse space and 1,685 sq m of offices. These newly built units are located in Fredericia, part of the Danish Triangle region which is the largest traffic hub in the country and boasts excellent connectivity.
This deal concludes a series of three transactions for the joint venture in 2022, totaling nearly 60,000 sqm. Two buildings and an extension were added to the portfolio which are all let to a strong range of covenants and geographically spread over the Benelux and Denmark in diverse prime logistics locations - Brussels, Luxembourg and Fredericia.
With the deals closed in 2022, the joint venture now comprises 150,000 sq m of prime logistical space.
Justine Weber Bret, Director of Asset Management & Transactions Logistics in the Nordics at CBRE Investment Management said:
“With strong occupier fundamentals and resilient demand1 for logistics space in Denmark, we are delighted to have acquired these logistics assets. Denmark has been experiencing strong fundamentals over the past 24 months2 and we believe these state-of-the-art warehousing assets will deliver stable and resilient income for our funds.”
“Despite these challenging times due to geopolitics, long-term structural shifts and macro-economics, this strategic partnership confirms MG Real Estate’s ambition to strengthen the growth in our logistics portfolio”, said Ignace Tytgat, CEO of MG Real Estate. “To establish and strengthen long-term relationships with tenants, MG Real Estate keeps property management in-house. The joint venture with CBRE Investment Management is therefore the right approach.”
With EUR 14.7 bn of logistics assets under management across 8.5 million sqm of space in 13 countries, CBRE Investment Management is amongst the largest investors and operators of logistics assets in Europe.