Ivanhoé Cambridge is strengthening its commitment to the German logistics property market through a partnership with logistics property specialist NVELOP. With NVELOP as a specialized developer, investor and manager of logistics and industrial real estate as well as data centers in Germany and Europe, Ivanhoé Cambridge is continuing the expansion of its continental European logistics portfolio Hub & Flow with the aim of building a platform of logistics real estate along central supply chains.
Ivanhoé Cambridge plans to invest in core plus logistics project developments and opportunities in Germany. NVELOP will contribute project development expertise and be responsible for the asset management of the properties. Ivanhoé Cambridge is aiming for an investment volume of around EUR 200 million in the first investment phase, with potential for further investment phases.
As part of this strategy, Ivanhoé Cambridge made the first investment and acquired a first-class logistics project development over 72,000 square meters in the Frankfurt submarket.
Christian Daumann, Vice President, Head of Investments, Germany at Ivanhoé Cambridge, says: “We are pleased to be working with an experienced project developer with whom we can optimally leverage the opportunities in the German logistics real estate market. Due to the long-standing relationship with the founders of NVELOP, we are convinced that together we can identify and implement development opportunities, with a clear focus on large-scale projects. Furthermore, this partnership underscores our strong ambitions for the logistics market in Europe, a core focus of our strategy.”
Logistics real estate has become a key pillar of sustainable real estate portfolios. The segment benefits from two structural trends, urbanization and the ongoing digitization of the economy, which has accelerated significantly again with the pandemic. Ivanhoé Cambridge’s European logistics operations enable the company to develop and own logistics assets that are essential to the current evolution of supply chains across Europe.
Artie Ioakim, Co-Founder and Chief Investment Officer, NVELOP, added: “We are very proud to partner with Ivanhoé Cambridge to initiate NVELOP’s first programmatic development partnership. We look forward to working together to capitalize on the opportunities and long-term dynamics we see in the German logistics real estate market.”
Ivanhoé Cambridge’s logistics strategy in continental Europe was launched with the Hub & Flow portfolio in February 2020. Most recently, the company acquired a 115,000 square meter logistics property in Hamburg. The portfolio complements Ivanhoé Cambridge’s other European logistics activities, which include a partnership with PLP to develop prime logistics assets in the UK, and a collaboration with URBZ Capital on its last-mile logistics assets strategy.
