HIH Invest Acquires Light Industrial Property near Leipzig/Halle Airport

• About 10,420 square metres of lettable area overall
• Acquired for “HIH Deutschland+ Core Logistik Invest” open-ended institutional fund
• Long-term lease signed with AES Airplane Equipment & Services GmbH

Hamburg, 22. March 2023 – HIH Invest Real Estate GmbH (“HIH Invest”) just acquired a light industrial property in the town of Kabelsketal in the German state of Sachsen-Anhalt. The lettable area of 10,419 square metres is located at a logistics centre between the cities of Leipzig and Halle/Saale and has direct access to the motorway and railway networks while also being in the immediate vicinity of Leipzig/Halle Airport. Completed in 2019, the property was now sold by the company Malcolm 22 Immobilien GmbH. It is tenant-occupied by AES Airplane Equipment & Services GmbH (“AES”), a maintenance business for aircraft components and air cargo containers that is certified in the EU, US, and UK, and that directly benefits from the proximity of this location to the airport. The lease agreement, concluded for a ten-year term, will expire in 2033. The acquisition was undertaken on behalf of “HIH Deutschland+ Core Logistik Invest,” an open-ended special AIF.

“Logistics represent the lifeline of a functioning economy and are coping splendidly with the current challenges. But demand continues to exceed the supply in modern facilities by far. In the Leipzig/Halle region, which has evolved into a logistics hotspot in recent years, there is a shortage in light industrial facilities above all,” explained Maximilian Tappert, Head of Transaction Management Logistics at HIH Invest.

The lettable area breaks down into 1,800 square metres of warehouse space, 263 square metres of office and social areas and 8,356 square metres of paved outdoor area. The latter fact implies potential for infill densification of the premises with flexible use options. The logistics property offers diverse delivery access options and comes with a 24-hour operating permit.

Robert Stadie, fund manager at HIH Invest, added: “Among the most compelling aspects of the property in Kabelsketal are the quality of location and the building design, which meets the needs not just of occupiers from the aviation sector but also of those in the packaging and mechanical engineering industries.”

Kabelsketal, a town in the Saalekreis district in the state of Sachsen-Anhalt, is part of the Leipzig/Halle conurbation and associable with the Grosskugel commercial zone. In recent years, the latter has benefited from the new-build development of the Segro logistics park in particular, which has attracted companies such as the Nagel Group, Hermes Logistik, Relaxdays, and DHL. The site has direct access to the A9 and A14 motorways via the B6 feeder. The Grosskugel railway station in the immediate vicinity provides rapid transit service, the commute to Leipzig’s central railway station taking about 35 minutes. Of key importance for AES, the property’s tenant, is the proximity of Leipzig/Halle Airport, a major air freight handling centre.

The “HIH Deutschland+ Core Logistik Invest” vehicle is categorised as an Article-8 fund. It aims for a target volume of at least 500 million euros, the focus being on modern core logistics real estate with excellent alternative use potential and high ESG standards. The minimum subscription amount is five million euros. The fund’s target group includes institutional investors and financial institutions. While the main investment destination is Germany, around 30 percent of the fund capital is to be invested in neighbouring countries (the Netherlands, France, Austria).

The law firm of Baker Tilly based in Frankfurt am Main handled the legal and tax due diligences for the transaction. The technical and ESG due diligences were conducted by Arcadis Germany GmbH in Hamburg; the commercial due diligence was done by Logivest GmbH. Colliers International Deutschland GmbH took care of the marketing.

“Logistics represent the lifeline of a functioning economy and are coping splendidly with the current challenges. But demand continues to exceed the supply in modern facilities by far. In the Leipzig/Halle region, which has evolved into a logistics hotspot in recent years, there is a shortage in light industrial facilities above all.” Maximilian Tappert, Head of Transaction Management Logistics, HIH Invest Real Estate

“Among the most compelling aspects of the property in Kabelsketal are the quality of location and the building design, which meets the needs not just of occupiers from the aviation sector but also of those in the packaging and mechanical engineering industries.” Robert Stadie, Portfolio Manager, HIH Invest Real Estate

HIH Invest Acquires Logistics Development in Dutch Town of Zwolle

• Property developed by Bouwbedrijf Aan de Stegge Twello B.V.
• About 23,000 square metres in total lettable area
• Fully occupied by DKL Equipment B.V. on ten-year forward lease
• Acquired for institutional fund HIH Deutschland+ Core Logistik Invest

Hamburg/Bonn, 7. February 2023 – HIH Invest Real Estate (“HIH Invest”) has acquired a logistics property development in the Dutch town of Zwolle. The acquisition took the form of an asset deal on behalf of “HIH Deutschland+ Core Logistik Invest,” an open-ended special AIF. The seller is Bouwbedrijf Aan de Stegge Twello B.V.

Construction work for the 23,009-square-metre warehouse on Oldenburgstraat in the Hessenpoort trading estate is scheduled to start in March of this year and expected to be completed by December 2023. The plan is to develop a plot of 34,000 sqm into 19,473 square metres of warehouse space, as well as 2,728 square metres of mezzanine space and 808 square metres for office and social areas. In addition, 24 HGV parking and 140 car parking spots will be created, with 22 of these to be equipped with EV charging stations. It is also planned to install a photovoltaic system of 5,000 square metres on the roof that will cover the entire electricity requirement of the property. If necessary, the system could be expanded.

Single tenant of the property, including the photovoltaic system, will be DKL Equipment B.V. a subsidiary of De Klok Logistics, a mid-market logistics operator who already signed a lease, thereby expanding its network to the fifth city in the Netherlands. “We consider ourselves well-positioned even for the time beyond the end of this lease. Since the property will have flexible access options and may be divided into two separate warehouse areas, it has a very high alternative use potential. We are seeking to have this energy-efficient property certified under the BREEAM Very Good standard,” said Maximilian Tappert, the Head of Transaction Management Logistics at HIH Invest.

Andreas Strey, Co-Head of Fund Management and Head of Logistics Fund Management at HIH Invest, elaborated: “Due to its convenient access to the A28 - A37 motorway corridor, Zwolle is a city with first-rate connectivity to Europe’s main ports and the economic centres in the European heartland. Logistics facilities in Zwolle currently show a vacancy rate of one percent. The Hessenpoort trading estate is directly accessible from the A28 motorway, and lies in close proximity both to the town’s port and its inner city.”

The HIH Deutschland+ Core Logistik Invest vehicle is categorised as an Article-8 fund. It aims for a target volume of 500 million euros or more, the focus being on modern core logistics real estate with excellent alternative use potential and high ESG standards. The minimum subscription amount is five million euros. The fund’s target group includes institutional investors and financial institutions. While the main investment destination is Germany, around 30 percent of the fund capital is supposed to be invested in neighbouring countries (the Netherlands, France, Austria). The property development in Zwolle is already the fifth property that HIH Invest purchased on behalf of the “HIH Deutschland+ Core Logistik Invest” and the second one in the Netherlands.

The legal due diligence (DD) was performed by DLA Piper Nederland N.V., the tax DD by Meijburg & Co B.V. (KPMG) and the technical DD by Cushman & Wakefield Netherlands BV. Cushman & Wakefield Netherlands BV also acted as estate agent for HIH Invest, whereas CBRE represented the seller side.

“We consider ourselves well-positioned even for the time beyond the end of this lease. Since it will have flexible access options and may be divided into two separate areas, the property is very well suited for alternative types of use. It is intended to obtain a BREEAM Very Good certificate for this energy-efficient building.” Maximilian Tappert, Head of Transaction Management Logistics, HIH Invest Real Estate

“Due to its convenient access to the A28 - A37 motorway corridor, Zwolle is a city with first-rate connectivity to Europe’s main ports and the economic centres in the European heartland. Logistics facilities in Zwolle currently show a vacancy rate of one percent. The Hessenpoort trading estate is directly accessible from the A28 motorway, and lies in close proximity both to the town’s port and its inner city.” Andreas Strey, Co-Head of Fund Management und Head of Logistics Fund Management, HIH Invest Real Estate