On a total of 33,500 square meters of land, the logistics campus was sustainably planned as a brownfield development according to the latest standards. The logistics property with a total rental area of 20,600 square meters was equipped with a Division into two units Multi-user capable and is certified according to “DGNB Gold” status. A photovoltaic system was installed on the roof. With the self-generated solar power, for example, the e-charging stations at the car and bicycle parking spaces can be operated.
Logistics property: six ground-level access gates and eight loading gates
The production warehouse offers flexible delivery options: the building has a total of six ground-level access gates and eight loading gates with dock levellers. On one side of the hall there is also an 800 square meter covered loading and unloading area as well as nine parking spaces for trucks. Another ten docking stations for trucks can be added to Unit 1 as an option. The new user, a specialist in technical services in the automotive industry, has already moved into the logistics campus.
Ceremonial opening by Deutsche Logistik Holding and LIP Invest
After greetings from the two managing directors of German Logistics Holding (DLH), Felix Zilling and Christoph Telker and the managing director of LIP Invest, Bodo Hollung, the symbolic red ribbon was cut and the campus officially opened. “By Bremer for Bremer in Bremen – this is how you could sum up this project. We are therefore particularly pleased that we are here today and can celebrate the inauguration of our project on Von-Thünen-Strasse at the Bremer Kreuz, ”explains Felix Zilling, Managing Director of DLH.
“When it comes to logistics, many think of dirty and loud. As we have shown here, however, that can also be done beautifully and sustainably. We are all the more pleased that with this project we were able to strengthen Bremen as a business location in the long term and sustainably. We wish both the new operator and our long-term strategic partner LIP as a buyer a lot of success and enjoyment in the new property, ”continued Zilling.
Logistics property with DGNB Gold status
Christoph Telker, also managing director of DLH, adds: “We are very pleased to have finally developed the site after only nine months of construction and handed it over on schedule. Thanks to the constructive cooperation, we were able to fully meet the requirements of our tenant and the DGNB Gold status. We would like to thank everyone involved in the project for this great team effort. We always wish the tenant a smooth process and continued success for the future. ”
The Bremer Kreuz commercial area is an important traffic junction and lies in the urban area of Bremen and Achim. Thanks to the direct connection to the A1 (Hamburg, Osnabrück / Ruhr area) and A27 (Bremerhaven / Hanover), it is very well connected in terms of transport. In addition, the logistics property is characterized by its excellent public transport connection.
“Bremen is one of the most important logistics locations in Germany – for both imports and exports – and is heavily influenced by the automotive industry. In addition, companies from the food and industrial sectors ensure constant demand for suitable space. We are therefore pleased that we were able to secure our fifth logistics property in Bremen for our fund with the conveniently located ‘Bremer Kreuz logistics campus’ and the direct rental to an industrial company, ”added. Bodo Hollung, partner and managing director at LIP Invest.
New market report on “Logistics Real Estate Germany”
As part of its quarterly market report “LIP UP TO DATE – Logistics Real Estate Germany”, LIP Invest has published current developments in the increasingly popular asset class of logistics real estate. In addition to a review of the first quarter of 2021, the report also gives an outlook on the development of the investment market for the second quarter of 2021. The current Market report contains figures and information on the transaction volume, take-up of space and the volume of new buildings as well as the development of returns depending on the age of the building, location, property quality and lease term
Logistics property: market overview
The global supply chains, already tense since last year, were again challenged with the blockade of the Suez Canal in the first quarter of 2021. The effects can be seen not only in the delayed arrival of seasonal items, but also in the logistics real estate market. A delay in the logistics process – even if it is only for one day – costs an enormous amount of money. Many companies have been trying to revise or realign their supply chains since the corona lockdowns.
One possibility is to build up buffer stocks in order to better absorb supply bottlenecks or to avoid them altogether. Accordingly, the space market is on the move and is driving demand to a new record high. On the commercial real estate investment market, logistics real estate ranks second among the asset classes with their high transaction volume.
“At the same time, we are observing a noticeable rise in prices on the market. The yield spread between new buildings and older existing properties is lower than ever before – for existing properties that are 30 years or older, the gross initial yield is now well below 6.00 percent. These are no longer just individual market outliers. We have observed several times that around 20-year-old logistics properties were sold almost at the level of the prime yield, i.e. below 4 percent. Such a development naturally causes headaches for us as investors, ”explains Jan-Nicolai Tröndle, Head of Acquisition at LIP Invest. Because of this price increase, new buildings will become even more attractive. LIP expects the high demand for space to continue in the course of the year and a strong response from investors.
Investment market of 1.9 billion euros
The transaction volume at the beginning of 2021 shines with the third-highest result ever measured of 1.9 billion euros. Once again, many individual deals are involved in this peak value. One of the largest transactions in the first quarter was the sale of a 190,000 square meter logistics park in Meerane (Saxony). The prime gross yield for absolute top properties in prime locations with long leases fell slightly in the first quarter to 3.85 percent.
LIP constantly analyzes the developments on the German logistics real estate market. This includes, among other things, the observation of the supply situation. In the first quarter of 2021, LIP properties with a volume of around 1.1 billion euros were offered for sale, which corresponds to a significant increase compared to the previous quarter.
At over 60 percent, the proportion of new buildings on offer was remarkably high in the first quarter of 2021. At around 1.0 million square meters, new building dynamics are also slightly above the previous year’s period. In addition, a slight increase in speculative buildings can be observed. This applies, for example, to the 54,000 square meter distribution center of the project developer Baytree in Leipzig. Compared to the previous quarter, it is noticeable that in the first quarter of 2021, far more logistics properties on the market were used by industrial companies, around 40 percent. The proportion of space used by logistics service providers is around 35 percent.
Logistics property: take-up of space
The demand for space was at a record high in the first quarter of 2021 and exceeded the previous year’s figure by 20 percent. The total result of 1.7 million square meters turned over gives the logistics real estate market the best start to the year ever. Large-scale leases, such as the approximately 95,000 square meters of new construction space that the logistics service provider BLG has rented in the GVZ Bremen, led to this top result.
Flexibility and resilience in the logistics industry
In the last few months there has been a lot of talk in the logistics industry about flexibility and resilience – fueled by the blockade of the Suez Canal in March. An alternative route for world trade is offered, for example, by the International North South Transport Corridor (INSTC), in which both India and Russia are significantly involved. But other countries – along or at the end of the corridor – can also benefit from this route in the future.
“For our location assessment, we are working intensively on alternative delivery routes. Traffic on the east-west axis, for example between Poznań in Poland and Duisburg, has increased noticeably as a result of the expansion of China’s New Land Bridge. This increases the attractiveness of locations on the eastern edge of Germany as a gateway for goods, ”explains Bodo Hollung, partner and managing director of LIP Invest. The LIP Invest is an investment house in the asset class logistics real estate Germany. LIP currently manages logistics properties with a total rental area of over 800,000 square meters and a volume of around 1.1 billion euros. (sg)
Also read: Logistics property: LIP invests in a climate-neutral new building in Mühldorf