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Arrow’s logistics platform buys €270m Europa portfolio

Venenweg 19, Zwanenburg in the Netherlands.

Strategic Industrial Real Estate, Arrow Capital Partners’ Cerberus-backed platform, has paid €270 million to Europa Capital for a portfolio of Dutch and German urban logistics and warehouse assets.

Europa sold the assets on behalf of its pan-European funds, Europa Fund V and Europa Fund VI.

The 38-asset portfolio, which is concentrated in key logistics and urban markets along transport corridors in The Netherlands and Germany, comprises a total of about 360,000 sq m of space let to a range of e-commerce and 3PL occupiers. Tenants include Lekkerland, Deutsche Post Immobilien (DHL), Dutch Organic International Trade, Fahrrad XXL Feld and CWS boco Deutschland.

Europa Capital began assembling the portfolio in 2018 on a deal-by-deal basis on behalf of three different value-add investment strategies: First Business Parks, Dutch Urban Light Industrial Platform and German Logistics Partnership.

The company said the strategies were based on the premise of improving the occupancy and rental profile by letting vacant space and restructuring or extending leases. Occupancy levels are about 91%.

One of Europa Capital’s largest ever deals

Europa Capital managing director James Pennington said the sale is one of the largest ever for Europa Capital “and is the culmination of three successful investment strategies and multiple asset purchases.”

Arrow’s head of real estate Europe Robert Howe said that the deal, “continues our investment in assets where we can add value and which are benefiting from a scarcity of supply and growing occupational demand.

“We have acquired over €1bn in our SIRE strategy over the last 12 months in multiple markets in Europe and are looking to deploy a further €2bn over the next two years, including assets with income, opportunity to refurbish and ground up development,” Howe said.

Europa Capital was advised by Dentons, EMCV Management Consulting and Eastdil Secured on the transaction. Arrow Capital Partners was advised by CBRE and Freshfields.