Cording and Migdal Insurance Group buy German light industrial portfolio11 April 2018
Cording Real Estate Group (Cording), acting as local partner, has acquired three light industrial properties in association with Israeli insurance company and pension manager Migdal, from ThreadGreen Industrial, who were advised by Gramercy Europe.
The total transaction cost is appx. €55.7 million. The transaction was concluded through only equity investment, without leverage. Migdal invested appx. 95% of the equity and Cording together with the Edmond de Rothschild Group invested appx. 5%.
The portfolio, known to the market as the "Robin Portfolio", comprises three properties with a total lettable area of around 70,000 sq m. The properties are all fully let to two subsidiaries of global concerns on triple-net (FRI) leases, extending until at least 2030.
Cording, a Northern European real estate investment firm and majority owned by Edmond de Rothschild (Suisse) S.A., is assuming responsibility as a single source for the asset and property management, together with the technical management of the properties, as a vertically integrated investment manager. Taking advantage of its local presence, Cording will manage the portfolio directly from Stuttgart and Frankfurt.
The assets comprise a property in Stuttgart, with a lettable area of some 45,250 sq m, a 7,750 sq m property in Baienfurt near Ravensburg, and an almost 17,000 sq m property in Kriftel, near Frankfurt.
Stephan Schaal, Head of Investment Germany at Cording, comments: "The acquisition of the Industrial portfolio further underscores Cording's competence in this sector. Thanks to previous instructions, we have built up extensive experience in the industrial and logistics property sector. We will apply this to the acquisition and management of further properties in this asset class for our clients."
Jonathan Ross, Head of International Real Estate at Migdal said, "The acquisition of this light industrial portfolio in Germany is an important step forward in achieving our long term strategic goals to deploy capital into high quality properties located in the German market and into the logistics/light industrial sector. Moreover, the partnership with Cording Group adds another world class manager to our overseas team."
Alistair Calvert, CEO of Gramercy Europe, added: “This portfolio has generated exceptional returns for our investors over a hold period of almost 10 years. The assets were part of our first fund which has performed extremely well and is now coming to the end of its natural life cycle.”
CBRE acted on behalf of the vendor in the transaction. Cording was advised by Fried, Frank, Harris, Shriver & Jacobson LLP. Migdal was advised by DLA Piper.
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