The acquisition of the Logicor portfolio by CIC has been by far the largest European real estate transaction of the current year. The German sub-portfolio also leads the rankings of the largest transactions in Germany. The sale of the Hansteen portfolio is in second place. These two megadeals are significantly responsible for the transaction volume in the first half year having already exceeded the total for the whole of last year. This essentially says everything about the momentum in the investment market and the appetite of investors for logistics and industrial property.
The further increase in demand combined with a continued supply shortage resulted in further yield compression. By the end of the year, we expect yields in the prime segment to fall below the 5% mark.
The fundamentals suggest that the reduced risk in the logistics segment is not only driven by the capital markets but also the real economy. Foreign trade is growing, employment figures are rising and online retail is showing a sustained high growth rate.
Source : Savills