Schroder Property sells German Logistic Portfolio for €163 million
Schroders Property Investment Management today announces the disposal of six* logistics warehouse units located in Germany from its Pan European Property Logistics Fund. The sale price of approximately €163 million represents a capital value of over €740 per m² and exceeds the valuation of the assets. 80% of the facilities are in the core locations of Hannover, Hamburg and Munich.
This disposal follows marketing of the properties by Jones Lang LaSalle which was initiated by Schroders because it was felt a competitive bidding process could be achieved in the current market. The assets attracted strong interest and after three rounds of bidding, terms were agreed and contracts have now been exchanged to sell the portfolio to Prologis, the leading global owner, operator and developer of industrial real estate. *Subject to customary closing conditions, one tenant may exercise their right to purchase.
Duncan Owen, Head of Property Investment, comments:
“This is a significant transaction for us in Europe. We are pleased that this disposal helps to achieve our strategy and maximises returns to the investors in the Fund. It is further evidence of the strength of Schroders Pan European platform.”
Schroders successful disposal completes the programme of acquisitions, developments and asset management of the German part of the Logistics Fund. The successful leasing and active management of the assets by Schroders during the period of ownership has maximised investment performance and ultimately the value of the properties.
Tony Smedley, Head of Pan European Funds, commented:
“We are delighted with this result for our investors. To have maximised pricing through completing value add initiatives and selling the German portfolio through a competitive process is testament to the skills of our Pan European team. We expect additional sales to be executed in the near future”
The Schroder Pan European Logistics Fund was launched in 2003. Following other recent sales, it currently holds assets valued at approximately €470m (at June 2013). The Pan European Logistics Fund is one of Schroders cross border funds in Continental Europe and still has key assets in France, Germany, Benelux and Italy. The Pan European team is led from the London office with support from its local teams in Amsterdam, Paris, Frankfurt and Milan.
Buddy Roes, Fund Manager, Pan European Logistics Fund commented:
“Our successful leasing of the six key logistics sites over the past 18 months improved the security of income and reduced the vacancy. The quality of this portfolio was the main factor for the strong interest, the great locations along with the stable rent levels created significant interest from investors.”
For further information, please contact:
Estelle Bibby, Senior PR Manager, Schroders
Tel: +44 (0)20 7658 3431 / estelle.bibby@Schroders.com
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Schroders has managed property funds since 1971 and now has £10.6 billion (EUR12.4 billion/$16.1 billion) of gross property assets under management (at 30 June 2013).
Most property funds referred to are unauthorised collective investment schemes as defined in the Financial Services and Markets Act 2000. Promotion of these funds is restricted and access to full information about these funds is only available to those exempt from the restriction.
For further information about Schroders’ property business visit www.schroderproperty.com
Schroders is a global asset management company with £255.8 billion (EUR298.5 billion/$388.0 billion)* under management as at 30 June 2013. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate from 34 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.
*Source: Schroders, all data pro forma as at 30 June 2013, including Cazenove Capital assets under management.
Further information about Schroders can be found at www.schroders.com.
Issued by Schroder Property Investment Management Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered number 243 8687 30 For regular updates by e-mail please register online at www.schroders.com for our alerting service.
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