European project developer and investor Verdion has rented a second 10,595 m² unit in the logistics center of Gallin, east of Hamburg, to the producer organization Mecklenburger Ernte, the company reports. This means that the association of fruit and vegetable producers, of which Behr Gemüse Garten, a subsidiary of Behr AG, is the main shareholder, doubles its capacity on the site.
Mecklenburger Ernte had already signed a twelve-year lease this summer for the 11,800 m² extension (Unit 3) at Neu-Galliner-Ring 14-16. The building will be completed by the end of January and will provide state-of-the-art logistics, warehousing, offices and common areas, as well as truck parking.
In the new transaction, EO Mecklenburger Ernte has now signed a 10.5-year lease for unit 2 of the logistics center. In doing so, the company converts a previous provisional lease in Unit 2 into a long-term commitment. With this agreement, the organization will double the processing and storage capacity on site and the logistics will be further optimized. Unit 1 is leased to DB Schenker long term.
Verdion had purchased the center in March 2019 for the Verdion European Logistics Fund (VELF) 1, which invests in last-mile logistics assets and value-added assets in Northern and Central Europe. In addition to the two existing units, the team also identified opportunities for expanding the space.
Valérie Setz, asset manager at Verdion: “With the lease at Mecklenburger Ernte, we are exploiting the full potential of the site and offering the tenant a doubling of capacity and thus increased efficiency for the supply chain. At the same time, the extension of the existing tenant’s contract has accelerated our plans, exceeding our expectations for the fund.”
Florian Stöbe, Head of Investment – Germany at Verdion: “This is exactly the type of property that we continue to seek in our investment strategy to upgrade existing buildings through technical innovation, development and active asset management. Renovating, intensifying space and making efficient use of former commercial sites requires in-depth expertise, but the resulting benefits for investors and the local economy make the orientation very attractive.
Logistics real estate with expansion potential
The Gallin logistics center is one of eight locations already secured for the €310 million VELF 1 fund. In Germany, Verdion acquired a 10,200 m² logistics building with potential for extension in Lützen, south of Leipzig, during the summer. In Denmark, two facilities near Copenhagen have been added for a value of around 30 million euros.
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