Kuehne + Nagel signs Europe warehouse sale, leaseback with Goodman
Kuehne + Nagel has entered into a sale and leaseback agreement for 22 warehouse locations across Europe with Goodman's European Logistics Fund (GELF), part of the Australian Goodman property group.
The total transaction value amounts to about 220 million euros ($335 million) with an average leaseback period of five years. GELF has also acquired 18.8 hectares of undeveloped land reserves. The combined portfolio covers about 430,000 square meters of warehouse space spread over five European countries with 10 assets in Germany, nine in France, and one in Spain, Belgium and Austria, respectively.
'This transaction is part of a portfolio asset management process which includes a continuous optimization and restructuring,' said Martin Holub, Kuehne + Nagel’s senior vice president real estate. 'In regard to developing a successful and sustainable business partnership with Goodman, this sale and leaseback portfolio project is an important step, not the least for our growing contract logistics business.'
Peter Davies, director of logistics funds for Goodman in Europe, said: 'This transaction provides us with a large number of assets in good locations such as the greater Berlin area as well as the Lyon, Ile de France and Madrid hubs. In addition, the excess land and some of the older properties will provide the fund with enhanced returns as they are developed or refurbished. The completion of this acquisition means that the fund's size since its launch in December 2006 has more than quadrupled.'
The transaction is expected to close in the second quarter.