CBRE Investment Management Acquires Logistics Portfolio in Benelux and the Nordics in Joint Venture with MG Real Estate
January 25, 2022
CBRE Investment Management, on behalf of a fund it sponsors, has acquired a portfolio of three logistics assets in a joint venture agreement with the developer and seller, MG Real Estate. The three assets are in different phases of construction and are located in Belgium, Sweden and Denmark.
The portfolio will offer a total of circa 62,000 sq m of newly built, grade A high-quality warehouse space, all of which will be completed in line with CBRE Investment Management’s Sustainability Vision and ESG targets. The portfolio is let to a strong range of covenants.
As a part of the joint venture agreement, CBRE Investment Management will have right of first refusal on the future predefined development pipeline of MG Real Estate, which currently comprises six identified projects in Belgium, Sweden and Denmark. MG Real Estate will be instructed on the property management of the portfolio.
Piet van Poppel, Country Manager, Belgium at CBRE Investment Management, said: “This was a compelling opportunity to acquire a sizeable portfolio of high-quality logistics assets in supply-constrained and high-demand markets. Well located in key logistics hotspots in Benelux and the Nordics, our strategic partnership with MG Real Estate not only offers exposure to three diverse prime logistics markets - Brussels, Malmo, and Frederica - upon completion, but also access to MG Real Estate’s pipeline of assets that meet our investment criteria” .
The fundamentals of European logistics remain very strong, with structural undersupply leading to increasing rents and yield compression, and CBRE Investment Management continues to see significant opportunities to acquire institutional quality real estate in liquid markets in line with the firm’s strategy.
“This strategic partnership gives MG Real Estate the ability to further consolidate the growth in our logistics portfolio and helps us grow as a developer and investor as well. We specifically chose this approach in order to establish and strengthen long-term relationships with tenants, by keeping tenant management in-house,” commented Ignace Tytgat, CEO of MG Real Estate.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $133.1 billion in assets under management* as of September 30, 2021, 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 2020 revenue). CBRE has more than 100,000 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 assets under management, 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 European high-speed developer. Speed is our selling point, in logistics, offices, retail or residential. Without ever compromising on quality. Top locations and strong architectural designs meeting the highest standards, that is what MGRE stands for.
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 small team. It means we make decisions quickly and remain compact and efficient, with a direct connection to our customers.