Logistics sector update

Following a bumper first quarter with the closing of the Kaltenkirchen logistics hub in Germany, the Logistics team have been working on a strong pipeline of projects in Q2.

In Poland, the Rzeszow Airport scheme has been fully let. The British Embassy will take 5,370 sq m of warehouse space and a 573 sq m office area. At the same time, Bosch has signed up to 7,436 sq m of warehouse space and an 813 sq m office. They join tenants Boeing and InPost.

The Rzeszow Airport scheme is one of three projects within Kajima’s Polish portfolio for sale through JLL. The €100m + portfolio includes the Zgorzelec and Silesia West logistics projects. Capital from the sale will be reinvested in new projects in Poland and Europe. Whilst prices in 2022 suffered a downturn globally and the political and economic turmoil seen across the year, investors are starting to seek projects with risk-adjusted returns to add to portfolios.

Elsewhere in Europe, the Logistics team are working on a series of acquisitions and leasing agreements alongside the construction of new developments.

The team has signed the first-ever lease agreement to rent the rooftop of its 60,000 sq m warehouse in Orleans, Paris, to Sunrock to provide solar panels once the development is constructed. Construction of a prime 40,000 sq m warehouse near Rotterdam port is expected to start this summer.

A new Head of Self Storage will be appointed in Spain to start a planned self-storage platform. The team is sourcing its development and refurbishment pipeline to help seed the platform, looking at assets in Madrid and Barcelona and will seek board approval in Q3.

Finally, the team are acquiring a new 32,000 sq m speculative logistics project in Magdeburg, Germany. The deal, in partnership with Panattoni, is expected to complete in late July/early August.