Burstone Group and Hines have formed a pan-European light industrial joint venture.
Burstone will invest 20% of the JV equity and be responsible for investment and asset management activity of the new platform, which is seeking to create and unlock value through investing across the light industrial submarket including stabilised assets, vacant or short income assets with significant repositioning potential, sale and leasebacks as well as development forward fundings and commitments.
The initial focus will be on Germany and the Netherlands, and the JV has already deployed more than €40m to acquire, predominantly off market, four assets in Germany and two in the Netherlands, totalling circa 49,000 sq m.
Paul Rodger, managing director of Burstone Europe, said: “The light industrial market, which has materially repriced since the peak of mid 2022, remains fragmented in many core Continental European locations. Much of the product is under-loved and under-managed, which offers a compelling opportunity to unlock value through our asset management approach. We are excited to be partnering with Hines on this new venture as we leverage the expertise, track record and on-the-ground relationships of our regional teams to source and acquire assets and then deliver value-add initiatives.”
Andrew Wooler, CEO of Burstone Group, added: “This partnership is another milestone in further broadening our capital partner base, and delivering on our strategy of building global fund and asset management business. Our focus now is to execute on an attractive pipeline of strategically aligned and accretive opportunities in high growth locations in Europe’s dominant industrial and logistics submarkets.”
Alfonso Munk, global co-head of investment management at Hines, said: “Today’s market presents a compelling opportunity for patient capital, as supply chain shifts driven by nearshoring and de-globalisation strengthen the role of light industrial real estate. With attractive entry pricing and resilient fundamentals, this segment is well suited to our HEREP III strategy.”
