– Tenant secures logistics centre with 36,000 square meters for long term
– New green lease agreement and conversion to LED
LIP Invest, a provider of special real estate funds in the asset class of logistics real estate in Germany, concludes a new lease agreement with the previous user for a term of 10 years, including granted extension options.
In addition to an adjustment to the current market rent, LIP was also able to agree a new value retention clause with the tenant, a wholesaler of electronic parts. As part of the contract negotiations, the parties agreed to include so-called green lease clauses. As a first step, the existing property will be completely converted to energy-efficient LED lighting.
LIP acquired the 36,000 square meter logistics property in 2018 as the first property for its Logistics Fund I. The hall was built in two construction phases in 2006 and 2008 and can be divided into five units. The property is located on the outskirts of Braunschweig directly on the A2, an important east-west transport route. The location is particularly suitable for wide-area distribution.
Sebastian Betz, Managing Director of LIP Invest, comments: “On the one hand, we can continue the trusting cooperation with our tenant. On the other hand, our institutional investors will benefit from the increased rental income, the modified lease terms and the increase in value associated with the conversion to LED. Due to the high savings in electricity costs, for tenants a conversion to modern lighting usually pays for itself within the first year and a half.”
