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Frasers' German/Austrian logistics buy from Alpha seen above €600m

Singapore-based Frasers Property's European subsidiary has added to its growing logistics portfolio by buying 22 German and Austrian properties owned principally by Luxembourg's Alpha Industrial Holding, plus other assets. BIE sources said the price was above €600m.

The acquisition comprises 16 logistics and light industrial facilities with a combined GLA of 393,800 sqm, located in key hubs in Germany and Austria, Frasers said in a release. London- based manager Tristan Capital Partners had an ownership in around 30% of the Alpha assets via two funds. The latest deal acquires virtually the entire assets of Alpha, including its development and asset management unit, and will take effect as of 30 June 2018.

With a tenant base of national and international corporations and weighted average lease expiry of 6.2 years, the portfolio will contribute stable, recurring income to Frasers Property Europe, said the company, the renamed Geneba Properties, based in Amsterdam. The acquisition includes six logistical projects acquired as forward purchases, adding GLA of 162,500 sqm to the package.

“Alpha Industrial complements our existing platform in Europe," said CEO of Frasers Property Group Panote Sirivadhanabhakdi in a release. "Alpha Industrial has a focused strategy for growth, specialising in the development of green and brown-field properties for conversion into modern logistics and industrial facilities. The ability to create assets is part of our long-term strategy that has served us well in Australia, Singapore and Thailand.”

The addition of development capabilities further strengthens the group's offering in Europe. "There will be even more opportunities for cross-marketing to tenants and knowledge sharing across our multi-geographies network in Australia, Thailand and Europe,” he added.

Frasers early last year made its entry into Europe by taking over Geneba for some €370m, and rebranding it. With an intention to build out the platform to around €2bn in 2-3 years, the group, run in Europe by Wulf Meinel, former German real estate head for the US private wealth giant Carlyle, has moved fast to add assets, including buying properties from carmaker BMW, and adding a €257m investment in six cross-docks being developed by Hamburg's ECE. It now has added close to €1bn in assets to take its portfolio to nearly €1.6bn in value.

Alpha said it now plans to build up a multi-family office with a focus on property investment and aims to accompany holdings and project developments with other investors and provide capital for these ventures. The firm will also invest in residential property, and has already acquired a 2-ha. plot in Frankfurt’s inner city.

Separately, Tristan, which last week announced it has accepted a 40% equity stake from US manager Candriam, a unit of New York Life insurance group, said that, in the deal, its CCP IV core-plus fund sold part-ownership in three logistic warehouses at Vienna Airport and Graz and a property in Germany. Its European Property Investors Special Opportunities 3 also sold stakes in two German logistics assets in Bielefeld, and at Hamburg’s Container Terminal. Proceeds for its sales totalled just under €178m.

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