Savills IM sells distribution centre in Straubing to MiDEAL group

Savills Investment Management (Savills IM), the international real estate investment manager, has sold a distribution centre 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. 

Sebastian Schambeck, Associate Director 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 in order to realise the increase in value – achieving a double-digit IRR in the process.”

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 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 realise 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.”

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.”

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)