30. April 2012     Print Print 

DHL Real Estate sells logistics asset to Cordea Savills

DHL Real Estate, advised by CBRE, has sold the 15,103 sq m warehouse facility in Leipzig, to international property fund manager, Cordea Savills. The deal marks the start of a program of direct development by DHL Real Estate in EMEA, and an exciting evolution for the activity of third-party logistics occupiers, in this new development cycle.

Leipzig is a strategic location within the DHL European network and the scheme has the capacity of delivering around 67,000 sq m of logistics space in total. On its completion in July, the unit will be let to DHL on a 10-year lease.

Prime logistics space across the EMEA region continues to be in very short supply, and this deal reflects a wider trend in which industrial and logistics occupiers are required to look at other options such as the design and build, and pre-let development in the absence of quality available space.

James Markby, Head of European Industrial and Logistics Investment, CBRE, said: “There has been strong interest from investors given the quality of this real estate, the strength of DHL, and the positive outlook for the logistics sector. With a yield profile of around 7% for prime stock, logistics assets provide investors with strong income distribution in a low growth environment. Backing developers and occupiers who are able to deliver a good pre-let pipeline of development can enhance performance returns further, while many of the development risks can be removed, or at least managed, and priced effectively.”