Europe-wide project developer and investor Verdion has leased a second unit with 10,595 m² of space at the logistics center in Gallin, east of Hamburg, to producer organization Mecklenburger Ernte Ltd, the company reports. This means that the association of fruit and vegetable producers whose largest shareholder is Behr Gemüse Garten Ltd, a subsidiary of BEHR AG, is doubling its capacity at the site.
Mecklenburger Ernte had already signed a twelve-year lease for the 11,800-ft2 expansion (Unit 3) at Neu-Galliner-Ring 14-16 in the summer. The building will be completed by the end of January and will offer state-of-the-art logistics, warehouse, office and shared space, as well as truck parking.
In the new transaction, Mecklenburger Ernte has now signed a 10.5-year lease for Unit 2 of the logistics center. In doing so, the company is transforming a previous interim lease in Unit 2 into a long-term commitment. The lease doubles the organization's processing and storage capacity at the site and will further optimize logistics. Unit 1 is leased to DB Schenker on a long-term basis.
Verdion had acquired the center in March 2019 for the Verdion European Logistics Fund (VELF) 1, which invests in last-mile logistics properties and value-add assets in Northern and Central Europe. In addition to the two existing units, the team identified potential for space expansion.
Valerie Setz, asset manager at Verdion, says: "By leasing to Mecklenburger Ernte, we are exploiting the full potential of the site, offering the tenant a doubling of capacity and thus an increase in efficiency for the supply chain. At the same time, the extension of the lease by the existing tenant has accelerated our plans, exceeding our expectations for the fund."
Florian Stöbe, Head of Investment - Germany at Verdion adds: "This is exactly the type of property we continue to look for in our investment strategy to upgrade existing buildings through technical innovation, development and active asset management. The reconfiguration, space intensification and efficient use of brownfield sites requires in-depth expertise. However, the resulting benefits for investors as well as for the local economy make the focus on this very attractive."
Logistics property with expansion potential
The logistics center in Gallin is one of eight properties already secured for the €310 million VELF 1 fund. This summer, Verdion acquired a 10,200 m² logistics property with expansion potential in Lützen, south of Leipzig. In Denmark, two properties near Copenhagen worth around €30 million were added.