Business, Freight News, Logistics

Baytree set to flourish in Germany

[ July 18, 2017   //   ]

AXA Investment Managers’ Baytree Logistics Properties arm has entered the German market with an up to 30,000sq m build-to-suit development in Hannover.

Located in the industrial Brink-Hafen area of the city, Baytree says the site is close to major road, rail and river routes, 10 minutes from the city centre or Hannover Airport. The site is authorised for urban, regional or national distribution.

Baytree plans to develop a single Grade-A logistics warehouse on the brownfield site, to include office space and storage in mezzanine.

Hannover is the sixth largest logistics occupier market in Germany, with a prime vacancy rate of only 4%. Take-up in Germany has been steadily increasing since 2014 driven primarily by the growth of e-commerce, changing consumer habits and the reconfiguration of supply chains.

Baytree intends to increase its presence in Germany new logistics sites in places where demand is outstrippibng supply.

Managing director of Baytree Logistics Properties, Rabih Modad, commented: “This new development project represents a significant milestone for Baytree as we expand our activities into one of Europe’s largest logistics markets and is in line with our ambition to build a market-leading pan-European logistics platform. We look forward to progressing this project and marketing it to those potential occupiers who will benefit from its strategic location and excellent transport links.”

AXA IM’s European head of transactions, Laurent Jacquemin, added: “The logistics and industrial sector remains attractive, being supported by structural changes in the way consumers and businesses operate, driven by e-commerce. We will continue to look for logistics development investment opportunities such as Hannover, in order to deliver value for our clients.”

Baytree recently started the first phase of development at Baytree Dagenham, East London and key infrastructure works are at Baytree Luton,

A building permit has also been secured for the Baytree Mer near Orleans,France.