Barings acquires Karstadt’s main German logistics facility for approximately €90 million from M7 Real Estate
Mar 06, 2018
London/Frankfurt, 6 March 2018 - Barings Real Estate, part of Barings LLC, one of the world’s largest diversified real estate investment managers, announces that it has acquired a 184,000 sq m logistics asset in Germany for approximately €90 million from a joint venture between a U.S. investor and M7 Real Estate (“M7”), the pan-European real estate investor and asset manager. Barings has acquired the property on behalf of a U.S. institutional investor and the purchase represents one of the largest transactions within the European logistics sector over the last 12 months.
The asset is fully let to the department store chain Karstadt until 2026 and it operates as their national distribution site. The asset is located in Unna, a city at the border of the Ruhrgebiet close to Dortmund, and is one of the leading logistics clusters in Germany due to the significant population in the state of Northrhine Westfalia (c. 12 million people) and excellent transportation links offering both strong north-south and east-west connections.
Christoph Wittkop, Managing Director and Country Head, Germany at Barings, said: “Following recent acquisitions of logistics assets in both Spain and France, we are pleased to have now completed our first acquisition in this sector in Germany. We are planning to significantly increase our logistics exposure across Europe, including CEE, through the acquisition of existing assets as well as through forward funding or purchasing developments. We are targeting core to value add opportunities and will consider both single properties, as well as country-focused or pan-European portfolios.”
"By acquiring the Unna logistics scheme over two years ago, our timing was excellent. We quickly succeeded in generating an attractive investment product, for which there were numerous potential buyers. This enabled us to realise a significant value increase for the joint venture’s shareholders, while leaving further potential value creation for the purchaser,” explains Alyssa Huse, Managing Director of M7 in Germany.
Savills acted as agent on the transaction and Barings was advised by RLI Investors. Goodwin acted as legal adviser to Barings while Simmons & Simmons acted for the vendor.
Barings Real Estate is part of Barings LLC, one of the world's largest diversified real estate investment managers. The group is an active investor in private and public, equity and debt markets, and provides core, value-added, and opportunistic investment advisory services to institutional and other qualified investors around the globe.
Barings is a $304+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients. We build lasting partnerships that leverage our distinctive expertise across traditional and alternative asset classes to deliver innovative solutions and exceptional service. Part of MassMutual, Barings maintains a strong global presence with over 1,800 associates and offices in 16 countries.
*As at December 31, 2017
About M7 Real Estate
M7 Real Estate Ltd is a pan-European investor and asset manager specialised in multi-let real estate. M7’s team consists of over 200 staff operating across a platform spanning 13 countries comprising the UK, Croatia, Czech Republic, Denmark, Finland, France, Germany, Hungary, Luxembourg, the Netherlands, Poland, Portugal and Slovakia.
Established in 2009 and wholly owned by its senior managers, M7 manages a portfolio of c.1,000 assets comprising 86 million sq ft of GLA with a capital value in excess of €5.1 billion.
M7 acts as an investment and asset manager to a series of funds that it has established and in which it co-invests alongside a large number of family office, high net worth and institutional investors. In addition, M7 has a number of joint ventures with private equity partners including Blackstone, Goldman Sachs International, H.I.G. Capital, Oaktree Capital Management and Starwood Capital. M7 also has separate account mandates where it acts as a third party asset manager for the portfolios of institutional, family office and high net worth investors including M&G Investments and MIRA.
Additional information about M7 can be found at www.m7re.eu.
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