Verdion completes VELF 1 asset sale

Verdion has completed the sale of its 21,600 sqm logistics asset in Nettetal, on the German-Dutch border, to Irish Life Investment Managers (ILIM) and Aberdeen Investments.

The newly developed facility previously formed part of Verdion European Logistics Fund 1 (VELF 1), which reached final close in 2020 and has invested over €300 million on the acquisition and enhancement of 11 logistics assets across Germany, the Netherlands, Denmark and Czechia. This is the fund’s second disposal and follows the sale of a logistics facility for UPS next to Prague Airport in 2022.

The brownfield redevelopment is part of the established Herrenpfad-Süd industrial estate between Venlo and Mönchengladbach. Its strategic location is less than a kilometre from the A61 motorway which connects the Netherlands with south west Germany, as well as being close to rail and bus connections and offering good accessibility to the inland port at Duisburg.

In 2023, before the completion of Verdion’s site redevelopment, the new facility was let to Advanced Supply Chain (ASC), which delivers supply chain services for leading retailers and consumer brands and is part of Reconomy, a leading provider of tech-enabled solutions for the circular economy.

Comprising 18,616 sq m of warehousing with a 2,035 sq m mezzanine, as well as 996 sq m of office and social spaces, the facility was constructed with maximum flexibility for up to four occupiers. Its highly energy-efficient building meets KfW EH 40 standards as well as being certified for DGNB Gold. Sustainability features include an energy supply that does not use fossil fuel primary sources, a PV panel-ready roof with installation currently progressing, and EV charging points.

Simon Walter, Executive Director – Investment Management, at Verdion said: “Our business plan is now fully executed, repurposing an underutilised site and more than doubling its leasable area with a modern, energy-efficient warehouse that has attracted an expanding supply chain services business for its German market entry. The disposal is in line with the fund’s strategy to return further value to our investors following stabilisation of the asset.

“At the same time, Verdion continues to deploy capital at a greater scale for our second value-add fund, acquiring and repositioning under-capitalised and under-managed logistics properties in established locations across Northern Europe.”

Verdion European Logistics Fund 2 (VELF 2) closed at the end of 2024 having raised more than €300 million of equity. It leverages Verdion’s vertically-integrated team and technical expertise to undertake refurbishment and development in key markets including Germany, the Netherlands, Denmark and Sweden. Work on a major new facility for cosmetics distribution brand Sæther near the northern Danish port city of Helsingør is well underway, and a €33.5 million, DGNB Gold-certified distribution centre in Horsens within Denmark’s triangle region has already been completed.

Paul Baragwanath, Senior Fund Manager at Irish Life Investment Managers, stated about the transaction: “This asset is strategically located in Western Germany close to the Dutch border, has strong sustainability features and solid industrial fundamentals, which all complement ILIM’s Pan-European real estate strategy. We are actively looking to deploy more capital this year across sectors and key gateway cities in Europe.”

According to Magnus Jeuck, Senior Transaction Manager for Germany, Poland and Austria at Aberdeen Investments: “Following the initial acquisitions in Leipzig and Munich for ILIM, we are delighted to expand the German portfolio with this core property. It combines an attractive location with optimal third-party usability, long-term cash flow, and an above-average ESG profile.”

JLL (Sell-Side advice) and GSK (legal) advised Verdion on the Nettetal sale. Baker Tilly (legal), CBRE (technical, ESG and valuation) and Colliers (Buy-Side advice) acted on behalf of Aberdeen.