LIP Invest, the Munich based investment specialist for logistics real estate, has entered a forward commitment to acquire a logistics centre currently under development in the city centre of Hanover. LAPP, a family-owned company based in Stuttgart, will use the site in future. With 18 production sites and 100 subsidiaries, LAPP is the global market leader for fully integrated cable and connection technology.
Julia Olivia Oechsler
The brownfield development is due to be completed in October 2020. The location of the site is ideal for LAPP. The new build offers four times the storage capacity than the previous site across the road and will enable the company to make its logistics more efficient, gear its processes to the future and further improve its offerings for customers. Thanks to the short distances, LAPP also makes a significant environmental contribution by reducing CO2 emissions.
Modern new logistics building as brown field development
The 68,000 sqm former Max Müller Ironworks site in the north of Hanover was purchased in 2016 by Hagedorn and extensively redeveloped. The existing buildings were demolished and the contaminated site cleared to a depth of 8 meters. The new development is 18,000 sqm and comprises of three units, including 24 loading gates with dock levellers and four ground level gates. A further 27,000 sqm concreted external area can be used to store and cut the manufactured cable.
Irrespective of the long-term lease, the 7.5 ton floor load capacity, 12.5 meters hall ceiling height as well as the quality of the building, show that the developer placed great importance on the third-party usability of the site.
TOP Location in Hanover
On top of its inner-city location, the A2 highway is just two kilometres away and the A7 highway 14 kilometres away. The Hannover-Langenhagen airport is 8 kilometres away and is easily accessible via a four-lane highway. All of this makes the location ideally suited for global distribution.
Off-market procedure with selectgroup of investors
The seller of the current development is bauwo Grundstücksgesellschaft, a project developer from Hanover who specialises in the asset classes logistics, office buildings and hotels and who has been active in the industry for over 30 years. “We were able to secure the highly desirable real estate in an off-market procedure of a select group of investors. More than five years’ cooperation with bauwo and the experience gained from now nine property acquisitions tipped the scales in our favour”, says Bodo Hollung, partner and managing director of LIP.
Throughout the acquisition process, LIP received legal advice from Eversheds Sutherland, tax advice from Mazars and technical advice from Drees & Sommer. The seller was advised by LPA München.