Verdion has leased its speculative logistics development in Nettetal, Germany, to Advanced Supply Chain (ASC) prior to completion. The 21,647 sqm redevelopment is located close to the Dutch border and Venlo, and forms part of the Verdion European Logistics Fund 1 (VELF 1).
Part of Reconomy, a leading provider of tech-enabled solutions for the circular economy, ASC delivers supply chain services for leading retailers and consumer brands.
Its facility at Herrenpfad Süd 40 will be the UK-based e-commerce supply chain specialist’s first in Germany, representing a €69 million investment and employing around 400 people over the next three years.
The Nettetal facility also represents another major investment by Reconomy in the global capabilities of its Re-use division, which consists of ASC and omnichannel returns management specialists, ReBound.
Ben Balfour, COO at ASC, said: “Expanding in Nettetal, is part of our mission for supporting customers’ goals to maximise the value of their supply chains. This new, well-located and well-designed operating facility on a brownfield site provides retailers with the ability to process European customer returns much closer to the point of sale. This can help to reduce supply chain mileage, cut carbon emissions, and generate new financial savings that benefit the overall feasibility of customer returns and avoid margin dilution.”
Valerie Setz, Asset Manager at Verdion, adds: “We are pleased to support Advanced Supply Chain’s German market entry. It had specific requirements in terms of building quality and technology, which we were able to implement during construction with our team of experts. As a result, its space has been tailored for efficient returns management workflows ahead of completion.”
The new facility comprises 18,573 sq m for e-commerce logistics and a 2,032 sq m mezzanine, as well as 951 sq m of office and communal spaces. Verdion is targeting DGNB Gold for the project, which includes heat pumps as well as a building structure ready for the installation of rooftop PV panels.
Florian Stöbe, Head of Investment – Germany at Verdion, says: “This asset in Nettetal is the first redevelopment opportunity we acquired for our VELF 1 fund, and it’s good to see the property fully let before completion. At the same time, we have other major redevelopment projects underway, with equity-raising for Verdion’s second value add fund progressing well.”
VELF 1 invests in urban logistics and properties in well-established locations in Europe with a total fund volume of €310 million.
Colliers International advised Verdion. JLL advised Advanced Supply Chain.