IMMOFINANZ has signed a contract with Blackstone for the sale of its entire logistics portfolio. The transaction covers all 36 logistics standing investments with around one million sqm of rentable space, which is located for the most part in Germany (24 properties) as well as in Hungary (5), Romania (3), Poland (2), Slovakia (1) and Russia (1). Blackstone will also purchase three development projects with about 65,000 sqm currently under construction in Hamburg (DE), Bucharest and Ploiesti (RO), which will be completed by IMMOFINANZ, as well as land reserves. Blackstone will integrate all the assets into Logicor, its European logistics platform.
The purchase price is determined by the property value of €536 million, less construction costs of €28 million for the three development projects. This value roughly represents the total carrying amount as of 31 July 2015 and confirms the revaluation of the logistics properties during the 2014/15 financial year. The final purchase price will be determined on the basis of financial statements prepared as of the closing date.
The sale is subject to the normal suspensive conditions for this type of a transaction, e.g. the consent of the antitrust authorities is required. The closing is expected to take place during the first quarter of the 2016 calendar year.
“As announced nearly three months ago, the sale of the logistics portfolio represents an important step to further simplify and optimise our portfolio structure and strengthen the focus on our core expertise in the retail and office segments,” explained IMMOFINANZ CEO Oliver Schumy. “The liquid funds released by the transaction will be invested in the expansion of our German portfolio, which will grow to nearly 200,000 sqm of rentable space and up to €40 million of rental income per year by mid-2018 with the office development projects currently in progress.“
These investments into German assets will increase the share of the standing investment portfolio (based on the carrying amount) in Germany from 7.5 percent to nearly 13 percent (excluding logistics).