Allianz Real Estate expands European logistics platform with three prime facilities in Nordics

Stockholm | Munich, 06/07/2022

Allianz Real Estate has further expanded its European logistics footprint with the acquisition of a three-asset, Grade A logistics portfolio in the Nordics through a sale-and-lease back forward transaction with Danish transport and logistics leader DSV. Two of the assets, in Denmark and Sweden, have recently been completed by DSV, with the remaining property in Denmark set to finish construction in Q4 this year.

Image: DSV 
 

Located in prime logistics hubs serving the greater Stockholm or Copenhagen markets, the 211,000 sqm portfolio meets very high technical, energy usage and ESG criteria. Around 85% of the building materials are reusable while the facilities have been designed with a minimum lifespan of 50 years.

Certifications include BREEAM Very Good and DGNB Silver while DSV has signed a green lease which commits the firm to the use of renewable energy. Each asset is compliant with EU Taxonomy and the Carbon Risk Real Estate Monitor decarbonization pathway, and fully support Allianz Real Estate’s aim to be carbon net-zero by 2050.

Allianz Real Estate has continued to allocate to the global logistics sector given its pivotal economic role in a post-Covid world. In March this year, the firm acquired a Grade A, 70,000 sqm logistics facility in Norrköping, Sweden; it also completed its sixth logistics transaction in Italy since 2019, bringing total assets under management in its Italian Logistics Fund to more than EUR 500 million.

As at the end of Q1 2022, total assets under management in Allianz Real Estate’s global logistics portfolio reached EUR 12.6 billion, with EUR 6.4 billion in Europe. This was up from EUR 11.6 billion as at the end of 2021 and follows a 32% year-on-year increase in FY2021.

A report published by Allianz Real Estate at the end of 2021, Long-term demand drivers behind logistics real estate, concluded that no market in Europe is close to full e-commerce penetration and all countries need more logistics space. ESG compliance will drive rental premiums and tenant quality, while demand for urban and last-mile assets will rise as delivery times continue to compress. Since the report’s publication, the onset of the situation in Ukraine and the associated spike in fuel prices could mean reduced global trade, which has led to higher stockpiling of inventory and therefore increasing warehouse demand, particularly in Europe. In the longer term, demand in the logistics sector will benefit from an emphasis on supply chain resilience.

 

Thomas Villadsen, Director Nordics & CEE, Allianz Real Estate

Thomas Villadsen, Director Nordics & CEE, Allianz Real Estate

Thomas Villadsen, Director Nordics & CEE, Allianz Real Estate, said: “This is a compelling opportunity to secure three exceptional logistics assets in an off-market deal with a prime tenant in two of Europe’s most exciting markets. Stockholm and Copenhagen continue to need modern facilities, with historically low vacancy rates creating opportunities.”

Annette Kroger, CEO, North & Central Europe, Allianz Real Estate

Annette Kroger, CEO, North & Central Europe, Allianz Real Estate

Annette Kroger, CEO, North & Central Europe, Allianz Real Estate, said: “Even with record transactions volumes in 2021, a supply-demand imbalance persists in the logistics sector. It continues to be a high-conviction theme for us, with the acceleration of ecommerce resulting in record demand. These positive fundamentals combined with our expertise, market relationships and ability to transact means we are well placed to deliver value-add investments for our clients.”

Tagged with:

Global West Europe West Europe Spotlight

Press Contact:

Phillip Lee
Phillip Lee
Senior Marketing & Communications Manager

Allianz Real Estate GmbH and Allianz Real Estate of America, their subsidiaries and affiliates are known jointly as “Allianz Real Estate”. Allianz Real Estate is a PIMCO company. When introducing a property investment opportunity to Allianz Real Estate you acknowledge that we are under no obligation to accept your introduction or enter into any agreement with you. Fees, commission or other payments in respect of introductions shall only be payable where there is a signed written agreement to that effect entered into between Allianz Real Estate and the introducer. By submitting an introduction to Allianz Real Estate you shall be deemed to have accepted the aforementioned terms.
PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world.  ©2022, PIMCO.