Anyone wanting to professionally prepare and accompany the sale of such a specialist asset class as that of a distribution centre must not only understand the commercial real estate market, they must also engage with modern retail and have the courage to take a much broader view.
Top performance for a very specialist asset class.
H&M Logistikzentrum HamburgThe property
At the time of the sale, the H&M Distribution Centre was the textile company's largest distribution centre worldwide. It was also a strategically important hub for Germany and a significant part of the European market. The building, constructed in 2008, satisfied all the requirements of a modern, highly-efficient distribution centre, including a large high-bay warehouse. Added to this is the unique location of the approx. 150,000 sqm property in Hamburg-Allermöhe with direct access to the A25 motorway and the Port of Hamburg.
Facts & figures
| Property name | H&M Distribution Centre |
|---|---|
| Address | Rungedamm 38 in 21035 Hamburg |
| Submarket | Allermöhe |
| Year of construction | 2008 |
| Lettable area | 115,000 sqm |
| Risk category | Core |
| Seller | CA Immo |
| Buyer | NPS |
| Activities | Sell-side mandate (in combination with AM) |
| Mandate period | 2015 |
The challenge
Although the building satisfies all the requirements of a modern distribution centre, it is very much tailored to the user and their industry, both in terms of its configuration and technical specification. This was considered by some logistics experts in preliminary discussions by applying price discounts. Therefore, a marketing strategy had to be found that ideally positioned the property in the international investment market.
Specifically, the property to be sold comprised a distribution centre that was strongly tailored to H&M's specific requirements. From a global perspective, this was a property held by an internationally renowned corporate group in one of the world’s most sought-after markets (Germany). From a sectoral perspective, this was an excellent macro and micro location and a property designed to accommodate future logistic uses. Our concept opened up the sales process to the international investment market from all perspectives in order to exploit all potentials.
The tools
Map, micro location
Map, macro location
Investment Memorandum
The result
Building Value: The positive results from Investment Advisory for H&M Logistikzentrum
- Expansion of the investor universe together with the use of the potentials regarding the international investment market
- Identification of a buyer who set valuation standards not only from the point of view of the asset in the local market, but furthermore as part of an international approach
- Achievement of a prime yield for the logistics segment that had never been achieved at that time
- The result clearly exceeded the seller’s expectations
"It was possible to value the sale property much more attractively in an international context than from a national or sector-specific perspective. The transaction achieved unprecedented prime yields for the segment and, of course, a satisfied customer."