Frankfurt / Main (ots)
The success story on the logistics investment market continues. In the first half of the year, a total of EUR 4,23 billion was invested in German logistics properties, of which EUR 2,2 billion was invested in the second quarter. It is the second best half-year result of all time. This is the result of the analysis by BNP Paribas Real Estate.
“Compared to the already very strong result of the previous year, another increase of 13% was registered. Individual and portfolio deals contributed equally to this sales growth with an increase of 13% and 14% respectively. In 2021, however, the investment focus will continue to be on individual transactions, into which around EUR 2,9 billion had flowed by the middle of the year, compared to EUR 1,4 billion in the portfolio area. The high attractiveness of German logistics real estate is also expressed in the fact that, in addition to the national and international players established in this segment, a number of investment managers are now launching new logistics funds, although they have not yet been active in this asset class, ”says Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH.
Hamburg in the fast lane in the 2nd quarter
After a comparatively weak start to the year (EUR 26 million), the Hamburg market moved into the fast lane with a record quarterly result of over EUR 400 million. The half-year result of around EUR 434 million, which is primarily driven by individual transactions, has catapulted the Hanseatic city to the top of the German locations. With an investment volume of EUR 94,5 million and a good EUR 91 million, Berlin and Munich are almost on a par. It is the lack of product that has resulted in the 69% and 33% year-over-year decline. The Düsseldorf market, on the other hand, grew significantly with almost EUR 83 million (+177%), partly due to a major deal. The general shortage of products in Germany's leading logistics regions can be seen in the half-year results of the other locations, which, with the exception of Cologne (EUR 74 million), are all below average.
Large transactions continue to determine the market
Furthermore, it is the transactions beyond the EUR 100 million mark that carry the market. Their share is almost exactly the same as last year at 47,5%. In absolute terms, a good EUR 2 billion flowed into this size segment, more than half of which in a good handful of individual transactions. With the exception of the size class of EUR 25 to 50 million, for which a slight decrease in the absolute investment volume of around 6% is registered, increasing sales are reported for all size classes. Above all below EUR 25 million, significantly more was invested with a good EUR 930 million (+38% compared to the previous year).
Special funds have invested almost EUR 1,6 billion in German logistics real estate in the current year. With a market share of almost 38%, they are by far the largest group of buyers. They are particularly active in the segment of individual transactions, where their investment turnover is above the EUR 1 billion mark. But they also hold the top position in portfolio deals. Investment / asset managers were able to achieve a market share of over 13%, primarily through single deals. Real estate AGs / REITS follow in third place. Due to some large-volume individual deals, the market share of insurance companies currently amounts to almost 10%. Corporates have invested a good EUR 300 million mainly in the context of small and medium-sized investment transactions.
German investors with almost 50% market share
With a market share of almost 50%, German investors are clearly the strongest buyer group even in the first half of the year. In the context of individual transactions alone, they placed around EUR 1,7 billion in the market. With just under 22% and a good 20% respectively, European and North American investors follow almost equally. While the proportion of North American buyers is primarily due to the so-called single deals, European investors have attracted attention, especially in the portfolio segment, with successful deals. Asian investors were also able to further expand their market share with currently a good 6%.
Sideways movement in yields
Despite the ongoing pressure from demand, prime yields have remained stable at a low level since the beginning of the year. The prime yields at the top locations nationwide are currently at 3,35%. Leipzig is an exception, where the net initial return is currently 3,60%.
“The German market for logistics real estate will remain one of the preferred investment goals of national and international investors, although the returns for high-quality real estate are currently already at a historically low level. In addition to further growth in the e-commerce sector, the central location in Europe as an important transit corridor, the economic strength of German industrial companies and a possible restructuring of supply chains speak for the location and the asset class. Accordingly, transaction activity is expected to remain lively in the second half of the year. Whether the impressive previous year's result of almost EUR 8 billion can be achieved again will primarily be a question of the product range. A further compression of yields in the second half of the year is very likely, ”says Christopher Raabe, summarizing the future outlook.
Head of Public Relations
BNP Paribas Real Estate Holding GmbH
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Phone: +49 (0) 69-298 99-948
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Original content by: BNP Paribas Real Estate Holding GmbH, transmitted by news aktuell