LIP Invest, leading investment manager for logistics properties in Germany, buys a flexible logistic property in the industrial area Osterweddingen near Magdeburg for its open real estate special AIF “LIP Real Estate Investment Fund – LOGISTICS GERMANY III”.
LIP was able to secure the property through a sale & lease-back deal with the STARK Group, which has been using the property as a state-of-the-art logistics centre for her subcompany STARK Deutschland since 2019. Due to the location can STARK, leading building materials retailer in Germany, ensure the rapid availability and a wide range of products for their customers in the country-wide branch network. After all, innovative and at the same time reliable logistics are becoming increasingly important for STARK Deutschland's customers. Increasing regulatory requirements and the complexity of the deliveries to the construction site, the last mile, are also presenting customers with ever new challenges. In addition to digital applications to increase efficiency and plannability on the construction site, the logistics centre – with its many advantages – is a mainstay of STARK Deutschland's logistics strategy.
“In our last market review, we emphasized that the sale & lease-back deals are increasing and that everyone involved, especially the owner-occupiers, is benefitting. The STARK Group for example is planning investments for the operational business. We on the other hand are gaining a state-of-the-art property including a tenant with excellent credit ratings for our portfolio”, says Bodo Hollung, partner and managing director at LIP Invest.
The acquired property distinguishes itself by its size: The high quality and modernly equipped logistics centre comprises 32,800 square meters with an additional 2,000 square meters of outdoor storage space. The hall can be served from two sides and is equipped with 20 ramp gates at ground level. Moreover, there are 131 parking spaces for cars and ten for trucks available. Further 1,800 square meters are used for office and social space. Above that, the hall can be expanded by another 15,000 square meters and 300 square meters might be set up as a hazardous material warehouse. The property combines the requirements for a flexible use over its long-life cycle.
LIP received legal support from GÖRG, tax support from WTS and technical support from Gleeds. The ESG Due Diligence was conducted by ES EnviroSustain. During the transaction, CBRE acted on the seller side.
The building was constructed in 2019 according to the latest standards, considering both barrier-free and energy-efficient facilities. The administration wing can be reached with an elevator and every hall area is equipped with a barrier-free toilet.
LED light strips with dimmable step switching are installed in the logistics hall. The STARK Group currently operates the warehouse primarily with green electricity. The installation of a photovoltaic system is already in planning by LIP, so that the tenant can act more independently of external suppliers and save additional costs at the same time. Such a system was statically included in the project development.
The distribution centre is located on the A2 traffic axis and is connected to several ports via waterways, including Magdeburg’s inner harbour. The very well-developed port infrastructure makes Magdeburg’s logistics region one of the most important back country hubs in Germany. Moreover, there are trimodal transhipment options via the cargo transport centre in Magdeburg.
Osterweddingen itself is a strategic logistics hub in the area, especially for retail and logistics service providers. The property location central in the northern half of Germany is particularly suitable for wide-ranging distribution. The late “cut-off times” are advantageous for tenants in particular – orders can be accepted relatively late and still be delivered the next day.