Verdion has secured shipping company Bauer & Mayer Spedition und Logistik GmbH for its warehouse asset in Lützen near Leipzig in Germany, taking the current accommodation at this asset to 100% occupation.
Bauer & Mayer has taken the 4,511 sqm unit at Patterken 11 for the distribution of goods for DIY chain Obi. It becomes part of the shipping company’s current 16,000 sqm portfolio of storage and distribution space across the region serving a range of clients.
In total Verdion’s Lützen asset extends to 40,000 sqm south of Leipzig, with direct access to the A9 motorway which links to Munich and Berlin. It was acquired for the Verdion European Logistics Fund 1 (VELF 1) in 2019.
Bauer & Mayer joins Innight Express Germany GmbH at the site’s current 10,200 sqm building.
Verdion has also started the speculative development of additional space, extending the existing building with a 10,019 sqm facility scheduled for completion in Q3 2023. This new, Grade-A accommodation targeting a DGNB Gold sustainability rating will have its own entrance, 12 loading bays and additional 668 sqm office and social areas, and 1,107 sqm of mezzanine space.
Overall, Verdion will invest around €10 million adding value to the original asset.
Tobias Passinger, Leasing and Investment Manager, at Verdion, says: “With the leasing of this existing space to Bauer & Mayer, we are gaining a very good tenant deeply rooted in the local community. The deal underlines the strong demand for well-connected, Grade A storage and logistics space in the Leipzig region.”
Florian Stöbe, Head of Investment – Germany adds: “Our focus from the beginning has been optimising the existing facility, as well as generating additional long-term added value through the development of a new logistics asset within the same site, in line with our VELF 1 strategy.
“At the same time, we remain true to our aim of operating our new assets without the use of fossil fuels. In Lützen, as in our current 21,600 sqm speculative development in Nettetal, we will be installing an air-source heat pump as part of a wider programme of creating more sustainable warehouse space.”
JLL was the leasing agent for the transaction and is also mandated to market the new unit.