Frankfurt, 17 April 2024 – GLP, a leading global business builder, owner and operator of logistics real estate, data centres, renewable energy and related technologies, today announced that it has successfully acquired a c.116,000 SQ M warehouse in Philippsburg, in the Karlsruhe metropolitan area of Germany.
The site is centrally located in the Rhine-Neckar region between Frankfurt and Stuttgart, two of the most economically dynamic business centres in Germany. The region’s thriving chemical, pharmaceutical and automotive industries, underpin the local logistics market driving low vacancy rates and stable demand.
GLP’s regeneration plans for the site will see the building renovated and modernised to meet GLP’s own high sustainability standards. The warehouse will be converted into a state-of-the-art logistics and commercial property offering flexible space suitable for a wide range of potential customers. The facility will initially target tenants with space requirements of between 2,000 and 10,000 SQ M though could also offer space of 50,000 SQ M or more instead of the smaller, segmented spaces.
GLP has acquired the site through a sale and short-term lease back arrangement with the current owner-occupier which runs until the end of 2024 when they plan to relocate. The renovation work is expected to begin at the start of 2025.
Putting sustainability at the heart of development
As with all of GLP’s regeneration projects in the German market, the renovation and modernisation of the logistics facility in Philippsburg will adhere to the highest standards of environmentally-friendly construction. The renovation work will comply with the strict sustainability standards of the German Sustainable Building Council (DGNB) and in accordance with the DGNB Gold standard. This focus on sustainability will reduce the energy consumption, carbon emissions and water usage, and thus operating costs for future tenants.
Cushman & Wakefield brokered the transaction. GLP was advised by Drees & Sommer on technical matters and by Greenberg Traurig on legal matters.
Trung Nguyen, Investment Manager at GLP Germany, comments: “As an active investor in logistics facilities, we are always looking for sites in ideal locations and this includes where there is an opportunity for the regeneration of an existing asset. Despite the current challenging market environment, we are using our experience in real estate development to acquire older existing buildings that are suitable for repositioning. Rather than adopting an automatic demolition and rebuild strategy, we always think first about a building’s repositioning potential, the environment, and an attractive, sustainable value appreciation for our investors.”
The GLP logistics facility in Philippsburg. The renovation work is expected to begin at the start of 2025.
Picture rights: GLP PF Germany Management GmbH
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