CBRE Investment Management and MG Real Estate Close Two Logistics Deals in Denmark
February 8, 2023
CBRE Investment Management (“CBRE IM”), has completed the transfer of two logistics parks in Denmark from MG Real Estate, one of which was added to the joint venture with MG Real Estate.
The first deal is the acquisition of the remaining six logistics units at MG Park Greve in Copenhagen from MG Real Estate, which comprises 52,177 sq m of warehouse space as well as 2,590 sq m of office space. One logistics unit has already been completed, with five more due to be developed. This completes the acquisition of the park, as the firm previously acquired five units comprising 51,903 sq m, which are fully let to five different tenants. The total deal at MG Park Greve comprises over 100,000 sq m.
Secondly, CBRE IM has further expanded the joint venture with project developer and investor, MG Real Estate, with units 3, 4 and 5 at MG Park Fredericia, comprising 26,789 sq m of warehouse space and 1,685 sq m of offices. These newly built units are located in Fredericia, part of the Danish Triangle region which is the largest traffic hub in the country and boasts excellent connectivity.
This deal concludes a series of three transactions for the joint venture in 2022, totaling nearly 60,000 sqm. Two buildings and an extension were added to the portfolio which are all let to a strong range of covenants and geographically spread over the Benelux and Denmark in diverse prime logistics locations - Brussels, Luxembourg and Fredericia.
With the deals closed in 2022, the joint venture now comprises 150,000 sq m of prime logistical space.
Justine Weber Bret, Director of Asset Management & Transactions Logistics in the Nordics at CBRE Investment Management said: “With strong occupier fundamentals and resilient demand1 for logistics space in Denmark, we are delighted to have acquired these logistics assets. Denmark has been experiencing strong fundamentals over the past 24 months2 and we believe these state-of-the-art warehousing assets will deliver stable and resilient income for our funds.”
“Despite these challenging times due to geopolitics, long-term structural shifts and macro-economics, this strategic partnership confirms MG Real Estate’s ambition to strengthen the growth in our logistics portfolio”, said Ignace Tytgat, CEO of MG Real Estate. “To establish and strengthen long-term relationships with tenants, MG Real Estate keeps property management in-house. The joint venture with CBRE Investment Management is therefore the right approach.”
With €14.7 bn of logistics assets under management3 across 8.5 million sqm of space in 13 countries, CBRE Investment Management is amongst the largest investors and operators of logistics assets in Europe.
CBRE IM was advised by CBRE on both transactions.
1Source: CBRE, JLL Q3 2022
2Source: Oxford Economics, Eurostat, Q3 2022
3 As of 30 September 2022
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $143.9 billion in assets under management* as of September 30, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.
About MG Real Estate
MG Real Estate is a leading European property developer, with over 20 years of experience, operating in 7 countries, with more than 1.4 million developed square metres. As an investor, the company is committed to ensure sustainable investments to enable its clients and communities to prosper.
Top multimodal locations and strong architectural designs meeting the highest standards, is what MG Real Estate stands for. Speed is our selling point, in logistics, offices, retail or residential. Without ever compromising on quality.
From the brownfield sites we have grown, via logistics projects, to become the MG Real Estate of today: an experienced developer that knows the market like no other. No matter how big we build, we stick to our experienced team. Meaning we make decisions quickly and remain compact and efficient, with a direct connection to our customers.