Singapore-based alternative investment manager Elite Partners Capital has acquired a “large-scale multi-user logistics park” measuring 180,000 sq m near Stuttgart, Germany through its flagship Elite Logistics Fund II.
According to a June 27 announcement, over 85% of the property’s net lettable area is currently tenanted to an “automotive giant” on a long lease. The unnamed company is using the space as its global logistics centre, says Elite.
Elite says the logistics park’s remaining lettable areas are tenanted to a “good mix” of engineering businesses. It says it will work closely with the largest tenant to “further enhance the property’s ESG specifications over the upcoming years”. “Post-enhancement, the property is expected to attain DGNB Gold Certification.”
The property is located within Ettlingen West’s Industrial Zone, with direct connections to the A5, A8 and A65 motorways; and access to the Port of Karlsruhe — a major inland port along the Rhine waterway. It is also located in close proximity to major international airports in Frankfurt and Stuttgart.
Elite acquired the property through the Elite Logistics Fund II, a pan-European logistics fund backed by a sovereign wealth fund and a network of family offices across Asia. The asset was sold by a joint venture between TPG Angelo Gordon and aam2core Holdings AG.
Elite had previously divested the first instalment of its Logistic Fund Series (Elite Logistics Fund I) to Blackstone in 2021, achieving an internal rate of return (IRR) of over 30%.
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“We have been closely monitoring the logistics market across pan-European cities, targeting quality assets with strong tenant covenants and compelling value-add opportunities,” says Victor Song, co-founder and CEO of Elite Partners Capital. “The stabilising interest rates present a strategic window of opportunity for our investors to re-enter the market.”
Elite is headquartered in Singapore, with offices in London, Prague and Luxembourg. To date, the firm has managed assets in excess of $2 billion across seven countries, a 420% increase from where it started in 2017.
Elite Partners Capital is one of the subsidiaries under Elite Partners Holdings, which is one of the three sponsors behind Elite UK REIT, formerly Elite Commercial REIT. The other two sponsors are Ho Lee Group and Sunway RE Capital.
