Frankfurt/Tel-Aviv, 10 December 2024. Savills Investment Management (Savills IM), the international real estate investment manager, has sold a distribution center in Straubing for its European Logistics Fund 2 (ELF 2). The buyer is pan-European commercial real estate fund manager MiDEAL Group (MiDEAL), which acquired the property for its second fund MiDEAL Management 2 LP. All parties have agreed not to disclose the purchase price.

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Savills IM acquired the property in 2019 for ELF 2, and in 2022 successfully completed the seamless letting of the 36,500 sqm of rental space to an internationally active German food supplier, achieving a significant increase in rent. Following the sale in Straubing, the ELF 2 portfolio comprises a total of 27 European logistics properties (including eight in Germany) with a market value of c. EUR 1 billion.  Savills IM continues to invest in core real estate in Europe and is looking for modern logistics properties in established locations as part of various funds and mandates.

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MiDEAL acquired the property on behalf of its second fund. With the closing of this deal, MiDEAL owns 22 commercial real estate properties across Europe, predominantly in Germany, spanning over 640,000 sqm. In 2021, MiDEAL raised for its fund EUR 300 million (including co-investment equity), predominantly from Israeli pension funds and insurance companies, for commercial real estate investments across Europe, with an emphasis on logistics properties in Germany.

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The distribution center, which was completed in 2003, is located in the dynamic economic region of Straubing, between the metropolitan regions of Munich and Regensburg. Straubing-Sand is an established industrial area with trimodal transport connections including road, rail and water access. The asset benefits from excellent connections to the federal highway and motorway network as well as direct connections to the rail network, which is a rare advantage for assets in the region. This opens up short transport routes, both regionally and nationally, as well as to neighboring countries Austria and the Czech Republic.

Sebastian Schambeck, Associate Director of Portfolio Management at Savills IM, says: "Despite a challenging market environment, we achieved a seamless letting of the entire lettable space with simultaneous rent increases at the end of 2022 thanks to the excellent work of our asset management team. Logistics properties in prime locations with tenants with strong credit ratings remain in high demand. For this reason, and in the interest of our investors, we initiated the sale to realize the increase in value – achieving a double-digit IRR in the process."

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Raviv Koren, Founder and Managing Partner at Mideal, says: This acquisition aligns with our commitment to expanding our portfolio with high-quality assets in key locations across Europe. This acquisition not only enhances our portfolio but also emphasizes our dedication to investing in properties with strong growth potential and a stable tenant base. We look forward to leveraging this asset to deliver sustained value for our investors.

Tim Ulrich MRICS, Head of Transactions Germany at Savills IM, adds: "While we were able to successfully realize profits with this divestment, our main focus is on attractive investment opportunities for the further expansion of the portfolios we manage. For our logistics funds and mandates, our focus is on modern properties at established logistics locations."

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Tom Stroosky, Acquisitions Manager at MiDEAL, adds: "We are very happy about this addition to our portfolio. Due to our quick and efficient decision-making process, together with the fact that we have full discretion over the fund’s equity, we had the ability to close this transaction quickly, despite the challenging market environment. The strong location, good tenant covenant, and overall balanced investment case meet our investment requirements and allow us to bring another solid investment to our portfolio. We look forward to deploying the rest of our fund commitments in due course.”

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Savills IM was advised on the transaction by Noerr (legal and tax) and CBRE (commercial and technical). MiDEAL was advised by AHB Rechtsanwälte Steuerberater (legal), Busch von Rönn und Partner (Tax), and Drees & Sommer SE (Technical).

 

Press contact:

Vered Bisror

Tel: +972 72 2400228

E: office@midealgroup.com

 

About Savills Investment Management: 

• Savills Investment Management is an international real estate investment manager with an established presence in 15 locations: Amsterdam, Frankfurt, Hamburg, Katowice, London, Luxembourg, Madrid, Milan, Munich, Paris, Singapore, Stockholm, Sydney, Tokyo and Warsaw.  

• As of 30 June 2024, Savills Investment Management managed total assets under management of €26.1 billion.  

• Savills Investment Management is the brand name used to represent Savills Investment Management LLP and its subsidiaries.  

• Savills Investment Management LLP is a limited liability partnership registered in England No: OC306423 authorised and regulated by the Financial Conduct Authority.    

• Savills Investment Management is regulated in the UK, Australia, Italy, Germany, Jersey, Japan, Luxembourg and Singapore.  

 

This communication is for information purposes only, the information contained is of a general nature and does not take into account any individual circumstances of the recipient. This communication constitutes neither investment advice nor an offer or an invitation to submit an offer for the acquisition or sale of units in an investment.

 

About MiDEAL Group

 

• MiDEAL Group is a Pan-European real estate funds manager with offices in Luxemburg, Germany, and Tel-Aviv, Israel.

• MiDEAL manages a portfolio of around EUR 1,000,000,000 of commercial real estate across Europe, while the vast majority of it is located in Germany.

• MiDEAL manages equity commitments of around EUR 500,000,000, predominantly from leading Israeli pension funds and insurance companies.

• The Fund focuses on purchasing and managing logistics properties while creating an optimal mix for its portfolio, including offices and retail.

• The fund’s general partner has full discretion over the equity commitments, allowing the fund to act, respond, and close deals quickly.