HIH Invest Real Estate (HIH Invest) and Partners Group, acting on behalf of their clients, intend to significantly upgrade LogPark Leipzig over the next five years, thereby continuing the strategy of DEMIRE Deutsche Mittelstand Real Estate AG (DEMIRE). The two joint venture partners, who have now completed the closing of the purchase from DEMIRE, are planning extensive investments in the existing buildings and two developments.
HIH Invest is now continuing the further development of the property by demolishing four existing buildings and replacing them with two business parks with a total of around 30,000 square metres of rental space. New logistics and commercial space of between 950 and 5,000 square metres of rental space per unit will be created, which will be built from 2025. Both new buildings will be constructed to the highest ESG standards.
“Our aim is to make the LogPark more attractive for new and existing tenants in the long term. To this end, we are bringing the space up to date and adding two business parks to the available space,” says Maximilian Tappert, Head of Transaction Management Logistics at HIH Invest. “Our letting concept for the vacant space in the two new business parks is very flexible, as the units can be let from around 950 square metres. Smaller logistics and commercial spaces of this size are very much in demand in the greater Leipzig area, so our offer is aimed at a broad spectrum of potential tenants.”
“With the thematic acquisition of the LogPark, we are further expanding our European last-mile logistics platform. We see considerable transformation and rental growth potential in the property due to its convenient location on several central logistics axes in Europe and in the immediate vicinity of Leipzig city centre. Together with HIH Invest, we will continue to develop the site’s potential into a leading logistics centre over the coming years,” commented Lucas Krupp, Member of Management Real Estate and Anne Jan Jaeger, Co-Head Real Estate Europe at Partners Group.
The buyers received legal advice on the acquisition of LogPark from Clifford Chance, tax advice from PwC and technical advice on ESG requirements and certifiability from Drees & Sommer. BNP Paribas Real Estate brokered the transaction, while HIH Invest was advised on the buyer side by Colliers International Deutschland GmbH.
