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Madison builds European logistics stake with Dutch buy

Private equity firm Madison International Realty has acquired a stake in a 30-asset European logistics and light industrial portfolio alongside Cairn Real Estate, investing through Dutch logistics vehicle, the Gateway Fund.

Madison has initially invested €22.5 million, which will increase to €50 million over the coming 18 months and will give Madison a significant stake in the portfolio.

Approximately 90% of the portfolio by value is situated in the Netherlands. The remaining properties are located in Germany. The portfolio is 99.3% occupied.

About 80% of the assets were built-to-suit for single tenants such as 31,000 sq m distribution centre in Zaltbommel, the Netherlands (pictured), which is occupied by Hitachi and serves as the company’s EMEA headquarters.

“The logistics sector remains one of our conviction buys and has continued to flourish throughout 2020, with the high levels of rent collection testament to its durability, while COVID-19 has also accelerated the trends that were already in place such as the rise of e-commerce and consumer demand for faster deliveries,”. Said Madison International Realty managing director Alex Lukesch.