Valor Real Estate Partners has acquired a 40,100 sq m (circa 431,000 sq ft) industrial site on Marzahner Strasse, in East Berlin, for around €50m. The purchase of the prime in-fill location is Valor’s largest in Germany to date.
Valor acquired the property from GEHE Pharma in a sale and leaseback transaction and on expiry of the existing lease the developer intends to undertake a significant refurbishment and extension of the existing 22,000 sq m (circa 236,000 sq ft) estate, delivering a circa 25,000 sq m (269,000 sq ft) property, suitable for both single and multi-tenant occupiers in the distribution and 3PL sectors.
Camila Malzkorn, vice president at Valor, said: “The Berlin in-fill market is characterised by a shortage of modern, functional space, underpinned by chronic land shortages and political guidelines, with rising construction costs set to further limit new development.
“Leveraging our growing in-country origination and asset management capabilities will enable us to significantly improve this assets income profile, delivering a sustainable, flexible fit-for-purpose warehouse that meets the growing demand from last-mile operators.”
The transaction was presented by Colliers on behalf of the seller. Valor was advised by CMS Hasche Sigle and Hollis Global.
