European real estate fund manager Patron Capital and developer Inbright have acquired a property in Cologne for their German light industrial real estate investment venture.
The partnership has acquired the asset comprising 150,000sqft of warehouse and office space at Max-Planck-Strasse 35 in Cologne Marsdorf from Mura Deutschland for an unspecified amount.
Inbright will take over asset management of the multi-let property, which includes manufacturing, production, service and storage areas.
Last year, Patron Capital and Inbright created the venture to invest in sustainable light industrial assets in Germany. Patron Capital is providing the capital to enable Inbright to acquire properties for the newly launched platform that seeks to own a portfolio of around β¬250m over the next three years.
At the time, the companies said the platform intends to acquire assets primarily in Germanyβs top seven regions of Berlin, Hamburg, Munich, Stuttgart, Cologne, Frankfurt and DΓΌsseldorf, as well as additional areas with βstrong economic prospects such as Karlsruhe, Ulm, Regensburg and Nurembergβ.
The venture will focus on the renovation of existing buildings and will look to acquire assets valued between β¬5m and β¬30m.
Patron and Inbright also previously acquired parts of an industrial site in Ludwigsburg occupied by manufacturing business Mann+Hummel.
Christoph Ignaczak, senior partner and investment director at Patron Capital, said: βThis deal in the Marsdorf area of Cologne reflects our strategy of making targeted investments to create modern light industrial schemes in future-proofed locations.
βIn addition to robust income from a diversified tenant base, this scheme offers an opportunity to create value through sustainable refurbishment, which we will pursue together with our partners at Inbright.β
Sebastian Pijnenburg, managing director of Inbright Development, said: βAmid ongoing challenges in the German real estate market, weβre pleased to have successfully completed this purchase in Cologne, one of Germanyβs top seven cities.
βThis deal highlights that transactions are still happening, particularly in the light industrial sector, where many companies are choosing to sell their buildings rather than taking on the modernisation programmes required to meet todayβs sustainability standards.β
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