Garbe and BlackRock JV to develop brownfield site in Salzgitter for large-scale logistics hub

In a significant development for Lower Saxony’s industrial landscape, Garbe Industrial Real Estate GmbH, in partnership with a fund managed by BlackRock, has acquired a 200,000-square-meter brownfield site in Salzgitter. The site, located in one of Germany’s key industrial regions, will be transformed into a large-scale logistics hub. Construction is expected to begin in early 2025, with completion slated for 2026.

The logistics facility will span 70,000 square meters, including a hall area of 63,000 square meters, 4,000 square meters of mezzanine storage, and 3,000 square meters for offices and social spaces. It will feature 65 dock levellers, 19 ground-level gates, and parking for 200 cars and 20 trucks. Designed to meet the needs of both traditional logistics providers and automotive sector users, the building will include side loading options and safety measures for storing electric vehicle batteries.

This project marks one of the first major collaborations between Garbe and BlackRock. The joint venture aims to build a portfolio of sustainable logistics and commercial properties across Europe, with a focus on Germany and France. The new property will meet BEG-40 energy efficiency standards, requiring only 40% of the primary energy of a standard building. A photovoltaic system will cover the entire roof to generate renewable energy, and the property will aim for Gold Standard certification from the German Sustainable Building Council.

Adrian Zellner, Executive Board Member of Garbe Industrial Real Estate, emphasized the strategic importance of repurposing brownfield sites for modern, sustainable development. “We are transforming unused land into high-quality logistics spaces, and given the demand, we expect full occupancy during the construction phase,” Zellner said. He highlighted the location’s strategic advantages, situated near major transport routes including the A39, A2, and A7 motorways, and within close proximity to established automotive and logistics companies.

The seller of the site, Hagedorn Group, specializes in revitalizing brownfield sites and has redeveloped over 3.5 million square meters of land. The site, which previously housed gypsum fiberboard production facilities from 1971 to 2003, has been fully cleared and prepared for new development.

With strong demand for large-scale logistics, the Salzgitter project is expected to play a crucial role in the region’s economic growth, providing a prime location for logistics operations and automotive industry support.