Nrep and HIH Invest acquire logistics development site in Herten, Germany, with 50% pre-let in place
Nrep, the leading Nordic urban developer and investor, has acquired a 37,000 sqm logistics development site in Herten, Germany, with joint venture partner HIH Invest Real Estate (HIH Invest), the Hamburg-based investment manager for real estate and infrastructure. The investment was made by Urban Partners’ real estate investment strategy Nrep via its logistics development and management business Logicenters. Nrep’s investment is being made via its Nordic Strategies Fund V (NSF V).
The logistics hub is already nearly 50% pre-let and construction is due to commence in Q2 2025, with delivery scheduled for Q3 2026. Once complete, the former brownfield site with comprise a total of 36,821 square metres of rental space, including 33,416 sqm of logistics facilities alongside 1,153 sqm of offices and 2,252 sqm of mezzanine space. The facility will also provide 170 car parking spaces and five lorry bays. HIH Invest will act as asset manager for the property once operational.
Going forward, the joint venture intends to grow a portfolio with a focus on providing capital for ready-to-develop, part-pre-let and sustainable logistics properties in prime locations across Germany. By combining Logicenters’ expertise in the development of modern, sustainable and flexible distribution centres with HIH Invest’s local market knowledge, the JV will address the widening funding gap in the sector and capitalise on the growing demand for modern, energy-efficient logistics properties that meet the highest industry standards.
Wolfgang Ködel, Head of Nrep Germany, said: “The prime logistics property market in Germany is characterised by limited supply, even more so when it comes to sustainable and flexible space. Our partnership with HIH Invest is complementary to our existing strategies to capitalise on this opportunity and strengthen our German market presence. By combining our expertise in developing best in class logistics centres with HIH’s asset management capabilities, we can unlock substantial value through these development projects.”
Felix Meyen, Managing Director of HIH Invest, comments: “We are familiar with the needs and requirements of the users of the rental properties, and we are in a strong position to respond quickly to realise increases in value. In the current market environment, there are attractive opportunities in selected developments. Thanks to our broad network and our extensive asset management expertise, we have the ideal set-up to realise increases in value. The cooperation with Nrep is a great pleasure for us and we look forward to working with them.”
Martin Ohly, Head of Logicenters Germany, said: “We are delighted to partner with HIH Invest and launch our first project in Herten which is strategically located in a well-connected industrial area. This joint venture reflects our commitment to developing state-of-the-art, energy-efficient logistics properties that meet a wide range of tenant requirements.”
Nrep was advised by Hogan Lovells (legal).
HIH Invest was advised by Ashurst (legal), CBRE (commercial) and Drees & Sommer (technical).