Investors back logistics sector to deliver returns

While the coronavirus pandemic has had a negative impact on large sections of the property market, one sector that has come through relatively unscathed is logistics. The ongoing growth in the popularity of online retail, which was accelerated by lockdown, has made the sector an attractive proposition for many investors. And as we report in this week's newsletter, activity levels in terms of both investment and development, seem in good health.

First up we have news of a partnership between Bouinvest and Clarion Partners, which is looking to invest EUR300 million in core plus, value-add and build-to-core logistics opportunities across Europe.

"The Covid-19 pandemic has only served to accelerate demand for well located, industrial product in established locations in response to changing consumer behaviour," says Alistair Calvert, CEO of Clarion Partners Europe. 

We also have news from Germany of no fewer than ten logistics and industrial projects currently underway in the north of the country – nine speculative new construction schemes in the regions of Bremen and Hanover, and a built-to-suit property in Osnabrück/Bielefeld. A total of around 1,644,000 sq m of industrial and logistics space was newly let in Germany outside of the country's top eight logistics locations in the first six months of 2020, which represents 56.7 per cent of the entire German letting market in this category, according to Realogis.

Staying in Germany, real estate investor and manager Cromwell Property Group, acting on behalf of Cromwell European Real Estate Investment Trust (CEREIT), has completed the acquisition of a 30,577 sq m freehold logistics asset in Sangerhausen.

Oxford Properties meanwhile, has teamed up with Logistics Capital Partners to make its first direct logistics investment in Europe, a 15-acre site adjacent to London's Heathrow Airport, which the company says will be developed "to provide a market leading purpose-built prime logistics space".

Also in the UK, Sidra Capital has secured a new lease with Amazon at its facility in Huntingdon, Cambridgeshire, which encompasses more than 252,000 square feet. 

In northern Switzerland, Stonweg has acquired a 48,000 sq m logistics asset in the canton of Solothurn, in a sale and leaseback deal with Swiss listed proptech company Meier Tobler Group.

And finally, in France, we have news of SEGRO's plans to deliver a 75,000 sq m underground logistics centre intended for urban distribution and last-mile delivery, as part of a wider redevelopment of the Gobelins rail station, in the 13th district of Paris.

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