GARBE Industrial and Sidra Capital join forces for sale-and-leaseback ventures

GARBE Industrial Real Estate GmbH has announced a strategic joint venture with Middle Eastern investment manager Sidra Capital. The partnership will focus on acquiring light industrial and logistics properties in Germany through sale-and-leaseback transactions, a strategy aimed at unlocking capital for property owners while enabling them to continue their operations under long-term leases.

The joint venture combines GARBE Industrial’s extensive expertise in logistics and light industrial sectors with Sidra Capital’s global investment network and long-term strategic outlook. The partnership aims to build a diversified portfolio of high-performing properties that cater to tenant needs while delivering steady, long-term returns. To date, the partnership has secured equity commitments of €50 million to support its ambitious investment strategy.

Dr. Peter Bartholomaeus, Head of Fund Management & Capital Markets and Member of the Executive Board at GARBE Industrial, expressed confidence in the collaboration. “Our partnership with Sidra Capital represents an opportunity to solidify our strategy in the light industrial segment. Together, we aim to develop a portfolio that combines robust performance with substantial growth potential,” said Bartholomaeus. He emphasized that the venture would capitalize on several key trends, including the ongoing e-commerce boom, rising sustainability requirements, and the reshaping of global supply chains. “Germany offers an attractive investment landscape, especially in these contexts,” he added.

The joint venture’s primary focus will be on properties with strong tenant covenants and excellent transport connectivity. While newly constructed buildings are a priority, the partnership will also target existing properties with potential for enhancement, particularly in the area of sustainability.

Sale-and-leaseback transactions provide an efficient way for property owners to release capital tied up in real estate, allowing them to reinvest in their core business activities while remaining operational in the same space under long-term leasing agreements. This model has proven particularly attractive for tenants in Germany’s logistics and industrial sectors, where demand for high-quality facilities continues to grow.

Sidra Capital, a prominent investment manager in the Middle East with a diversified global portfolio, views this partnership as a strategic move to tap into Europe’s industrial real estate market. “Our commitment to providing capital for this venture underscores the strong interest in industrial sector investments from Middle Eastern investors,” said Ghassan Soufi, Vice Chairman of Sidra Capital. “Collaborating with a market leader like GARBE Industrial aligns perfectly with our long-term investment strategy and strengthens our presence in key target markets.”

Matt Hills, Managing Director of Real Estate Europe at Sidra Capital, highlighted the significance of Germany’s logistics and industrial real estate sector. “Germany represents a mature and well-established market with considerable opportunities for growth. Despite current economic headwinds and market price adjustments, we see this as an ideal entry point for long-term investors,” Hills remarked. He further emphasized the potential for growth as market conditions stabilize and improve over time.

In addition to financial returns, the joint venture is also keen on fostering sustainability in its portfolio. By investing in properties with redevelopment opportunities, the partnership aims to incorporate green technologies and sustainable practices, ensuring that its assets meet evolving environmental standards and regulatory requirements.

The partnership reflects a growing trend in the industrial and logistics real estate sector, where international investors increasingly look to collaborate with established local players to access high-potential markets. With Germany’s strategic position in Europe, robust infrastructure, and thriving industrial base, it remains an attractive destination for long-term investments in logistics and light industrial assets.

GARBE Industrial and Sidra Capital’s venture signals a forward-looking approach, combining market expertise with strategic capital allocation to seize opportunities in one of Europe’s most dynamic real estate sectors. As economic conditions evolve, the partnership is poised to take advantage of emerging trends and deliver value for both investors and tenants.

Photo's: Dr Peter Bartholomäus, Source: GARBE Industrial Real Estate, Ghassan Soufi, Source: Sidra Capital, Matt Hills, Source: Sidra Capital and Mark Dahlke, Source: Sidra Capital