September.09.2014
Berlin – Orrick, Herrington & Sutcliffe LLP has advised Valad Europe, a leading independent diversified real estate investment manager, on its acquisition of a logistics asset in Thuringia, Germany, for €23 million. The investment was made on behalf of its Valad European Diversified Fund (VEDF) which invests in office, retail and logistics assets across Germany, France and the UK.
The 36,300 sq m logistics building, Holzlandstrasse 1, Reichenbach, is leased until 2023 to Metro Logistics Germany GmbH, the logistics division of Metro Group.
In a press release issued by Valad, Andreas Hardt, Valad Europe’s Head of Germany, commented: “The strategic location, strong covenant and long lease on this building make it an excellent investment and complement the portfolio of assets we are building for VEDF. The Fund has invested circa €80 million in Germany this year across six assets, with a further €90 million under offer or exchanged. We have recently doubled VEDF’s total capacity to €1 billion and have in excess of €250 million still to invest in Germany, where we believe the fundamentals of the market remain strong and continue to provide attractive investment opportunities.”
The Valad European Diversified Fund is a €1 billion fund with leverage between 50 - 65 percent and a focus on Core Plus / Value Add assets in Germany, France and the UK across the office, retail and industrial distribution warehouse/smaller logistics sectors.
Valad Europe manages €4.5 billion of investment and development assets across its funds and mandates in Europe, with approximately €900 million of assets in Germany.
Orrick’s German real estate team has a longstanding relationship with Valad Europe. The Orrick on this transaction was led by partner Norbert Impelmann and included senior associate Jochen Beutel, associate Ruben Pisal, partner Annette Pospich and partner Stefan Schultes-Schnitzlein.