Union Investment enters the light industrial asset class in Kassel

by   CIJ News iDesk III
2022-05-13   08:31
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Union Investment has secured a logistics and production facility in Kassel via a forward funding deal. The acquisition of the industrial building marks Union Investment’s entry into the light industrial asset class. The new headquarters of component manufacturer Hexagon Purus will be constructed in the Langes Feld commercial zone and is scheduled for completion by mid-2023. The purchase is being made for special fund UII Garbe Logistics Real Estate Fund. The vendor is Hamburg-based developer property team AG. The parties agreed not to disclose the financial details of the transaction.

“Demand for light industrial space is high at the moment, but supply is tight. Light industrial properties can be used in a variety of ways and therefore offer a high level of diversification across a wide range of industries. Many investors have come to realise this, which is why investment in light industrial assets has risen steadily in recent years,” said Wolfgang Kessler, a member of the Management Board of Union Investment Institutional Property GmbH.

"We are pleased that Union Investment will now accompany the growth story of our user Hexagon Purus as an end investor," says Torsten Martens, CEO of Hamburg-based project developer property team AG.

The new light industrial facility will occupy a 32,600 sqm site. Around 17,000 sqm will be used for production and logistics, with some 6,000 sqm dedicated to office space and welfare areas. The developer plans to obtain DGNB Gold certification.

The UII Garbe Logistics Real Estate Fund was launched jointly by Union Investment and GARBE Industrial Real Estate in 2020. The special fund invests in logistics and light industrial properties in Europe.