26 Sep 2016

Tristan fund buys €40m Hamburg logistics asset

Source: Property EU

An opportunity fund advised by Tristan Capital Partners is investing around €40 mln in a logistics warehouse in the Port of Hamburg.

European Property Investors Special Opportunities III (EPISO 3) has purchased the 32,400 m2 asset from Schneider Versand GmbH in a sale-and-lease back transaction.

Tristan said the property included significant development land, permitting an expansion of around 30,000 m2 in a prime location near to the Altenwerder Container Terminal.

Hamburg is the second largest container port in Europe.

'We are pleased to have secured one of the last development parcels on the port – the most attractive and dynamic location for logistics real estate in Germany. With demand outpacing supply by a significant margin and current vacancy rates at all-time low, this transaction offers great potential to create value for our investors,' commented Ali Otmar, senior partner at Tristan Capital. 'We plan to commence construction of the first 15,000 m2 warehouse on a speculative basis as soon as building permission is granted.'

Alpha Industrial co-invested alongside EPISO 3 in the purchase and will be advising on development and asset management. Funds advised by Tristan Capital Partners have previously worked with the Cologne-based developer on six other investments.

Tristan said that the freeholder of the site, the Hamburg Port Authority, is supportive of the planned development and has signed a new 30-year lease for the land.

'We are very pleased to continue the cooperation with Tristan Capital and to add such a prime asset to our joint-venture portfolio. We are working hard to kick-start the speculative development early in 2017 and benefit from the positive supply-demand dynamics at the Port,' said Georg Starck, managing director at Alpha Industrial.

Taylor Wessing, BNP Paribas, Arcadis and Realogis advised EPISO 3 and Alpha Industrial on the transaction.