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TH Real Estate acquires logistics development near Stuttgart

Stuttgart North

TH Real Estate has agreed contracts to forward fund a logistics development project near the German city Ludwigsburg, on behalf of one of its Logistics Funds.

The c.17,200 sq m (182,986 sq ft) logistics development is located in the industrial area of Benningen, near Ludwigsburg, in the north of Stuttgart. It is being developed by industrial space developer Panattoni Europe and is scheduled to start onsite by the end of 2017. Upon completion, the premium development will comprise c.15,300 sq m (164,688 sq ft) of distribution space with a c.1,200 sq m (12,917 sq ft) mezzanine level and c.700 sq m (7,535 sq ft) of office space.

Specifically designed for logistics activities, this property has been 100% pre-let to a German based logistics provider, on a 10-year lease. The logistics development is located in close proximity to Ludwigsburg and Stuttgart. It benefits from excellent motorway access to A81 and A8, which guarantees trans-regional distribution and connectivity to approximately 21 million residents within the region.

Thorsten Kiel, Head of Logistics, Europe, at TH Real Estate, comments: "Due to our excellent access to the market, it was possible to acquire this asset in an area, which is becoming more attractive for logistics in Germany. We are extremely satisfied to know this second, high-quality asset will be a part of the portfolio for the Fund. As well as this asset, further investments for the Fund are under due diligence. We believe logistics properties will deliver long-term lettings as well as stable, sustainable income-returns while diversify the risks."

Fred-Markus Bohne, Managing Partner, at Panattoni Europe: "In Benningen we will present our achievements in regards to Brownfield developments. It enables us to realise a first-class property in a wider area with high concentration of logistics. This investment made by TH Real Estate and the good collaboration of the teams are the main contributors to this success. We are hoping to finalise this logistics development successfully at the end of 2018."

The Fund, launched May 2017, is TH Real Estate's fourth institutional logistics fund for German institutional investors during the last five years. With a focus on new build and existing schemes in attractive locations across Germany, the target size is c.€300m. 

Ellwanger & Geiger Real Estate, a daughter company of Bankhaus Ellwanger & Geiger, acted on behalf of the tenant.

Issued by Nuveen Real Estate Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services. TH Real Estate is an investment affiliate of Nuveen, LLC (“Nuveen”), the investment management arm of TIAA. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.

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