Deutsche Post AG took over the last-mile logistics property in Bad Hersfeld in December 2022. The property was acquired by KanAm Grund Group at the end of 2021 as part of a forward deal for the open-ended real estate fund, KanAm Grund Europa, and had since been under construction, which was completed at the end of 2022. Together with the last-mile logistics property in Bad Hersfeld, three further logistics and light industrial properties in Dreieich, Nettetal and Meckenbeuren, which are fully let, were acquired by the fund at the time. The seller is a joint venture of Bechtolsheim Real Estate and Zamberk Real Estate Ventures (ZREV). The parties have agreed not to disclose the sales price.
The property in Bad Hersfeld is used by Deutsche Post AG as a national distribution center. Bad Hersfeld is located in the north-eastern part of Hessen and is the central hub for the distribution of goods in Germany. The property is located in the commercial area in the immediate vicinity of the city center. Due to the excellent connection to the A4 motorway, the property is only a few minutes away from one of the most important east-west connections in Germany. The A7 and A5 motorways can also be reached in a short time.
Tenants of the three other properties in Dreieich, Nettetal and Meckenbeuren are, among others, Caverion Deutschland GmbH, TDK Kabel GmbH and Zeppelin Mobile Systems GmbH. In total, the portfolio has around 24,000 square meters of lettable space. The two largest locations are Nettetal and Meckenbeuren.
Active asset management leverages further potential in the portfolio
Through active asset management on the part of the KanAm Grund Group, it was also possible to leverage the portfolio's initial potential. For example, the supply situation in Nettetal was further optimized for the tenant through the purchase of a partial plot of land. The supply situation thus meets the latest requirements for a logistics property, so that the tenant can now use the property optimally for its purposes. In return, the tenant has long-term plans for Nettetal as location.
About KanAm Grund Europa
The KanAm Grund Europa, which was launched in 2014, focuses on office properties in the top five locations in Germany, with an admixture from Western Europe. The logistics and light industrial property portfolio in Bad Hersfeld, Dreieich, Nettetal and Meckenbeuren, which is now fully integrated into the fund, provides further diversification. The fund portfolio comprises eight properties at seven locations in two countries. The share of the logistics portfolio in the fund's total property portfolio is just under 9 percent.
Development of the logistics markets in Germany
The German logistics markets are still on a record course. The already excellent result of the previous year was again exceeded by 10.5 percent with a take-up of around 6.61 million m² (incl. owner-occupiers). Of this, 2.71 million m² was attributable to the major logistics regions (Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Leipzig, Munich, Stuttgart) and 3.9 million m² to the regions outside the major logistics hubs. In addition to the already very dynamic letting activity this year, there were a number of major deals that contributed to this record result. Against the background of the sharp rise in construction costs, a further slight increase in rents is also to be expected. (Source: BNP Paribas Real Estate GmbH, as at 30.09.2022)
Picture: distribution center Bad Hersfeld copyright ZREV GmbH