Hines, the international real estate firm, announced the launch of a new investment strategy in the logistics sector. Over the next 18-24 months the firm plans to invest capital totalling approximately €400 million in logistics properties in the German market. There will also be a focus on development projects in selected locations. With the new strategy, Hines is expanding its established investment approach and concentration on core properties. This is a response on the rapidly growing demand for high-quality logistics facilities and the company is making a decisive move to benefit from the future potential of the segment. Last year, Hines sold a portion of its existing logistics portfolio in a pan-European transaction to a large institutional investor.
As the first property acquisition under the new strategy, Hines has now purchased a 36,000-square-meter logistics complex in Maintal near Frankfurt for the Hines Global Income Trust. Situated next to the autobahn A66, the site is very close to one of Germany’s most important markets. The property is fully leased to the logistics service providers Deutsche Post (DHL) and Schenker as well as the timber wholesaler Becher. The building was sold to Hines by the private investors Werner Gutperle and Jürgen B. Harder.
Christian Meister, Managing Director at Hines: “With this acquisition we are consequently following our new investment strategy and demonstrating our growth ambitions in this asset class after the purchases of several core properties in recent years. Our focus is on core-plus and value-add properties in good to excellent locations. Moreover, along with investments in the logistics sector, we will also be active as a project developer.”
Due to steady growth in online sales, Hines anticipates a strong long-term trend in the market demand for logistics properties as well as increasing rent levels. For parcel services, one of the biggest challenges is the “last mile” – the transport of goods from the warehouse to the customer’s door. This makes it essential to have access to modern logistics facilities, especially with excellent transport connections. With the completion of the planned autobahn link “Riederwald Tunnel,” the complex purchased by Hines in Maintal will therefore offer prospective tenants even better conditions in the medium to long term.
“Against that backdrop, and after an extensive review of various options, we will also begin making selective investments in the logistics development business in course of 2019. This will include the purchase of land as well as existing buildings. The developed properties are intended both for our own portfolio and for market sale,” said Alexander Möll, Senior Managing Director at Hines.
Hines was advised in the acquisition by Pöllath & Partners. In addition, the transaction process was supported by JLL.