AEW invests EUR91m in European urban light-industrial park developments
AEW, a global real estate investment and asset management platform, has completed the acquisition of five light industrial developments in France and Germany, in separate transactions, for a total of EUR91 million.
These build-to-core investments extend and complement AEW’s existing EUR4 billion pan-European industrial and logistics portfolio.
Upon completion, the BREEAM-certified developments will comprise 55,000 sqm in key locations in the immediate vicinities of Berlin, Stuttgart and Paris and will benefit from strong transport connections. Four of the schemes are set for completion in 2020, with the final development due by the end of 2021.
AEW has a well-established 20-year track record in the warehouse market which spans France, Germany, the Netherlands, Belgium, Poland, the Czech Republic, Italy and Spain.
Rémy Vertupier, Co-Head of Institutional Fund Management, Separate Accounts & Club Deals at AEW, says: "Urbanisation, new consumer consumption patterns and pressure on city road networks are collectively driving increased demand for urban light-industrial space. These developments will provide much needed capacity in areas where high quality stock and land for new development are both in limited supply. We believe the urban light industrial asset class will prove resilient against the impact of the Covid-19 pandemic and, in fact, may benefit from the potential re-shoring of activity as global supply chains become more regionalised. Furthermore, we expect that the structural trends driving the sector will be accelerated by the crisis, with e-commerce penetrating the habits of European consumers faster in the current social-distancing context.”