Duo steadily building up presence in new territory.
- What KKR and Mirastar have agreed to buy a Maersk warehouse in Duisburg.
- Why The duo has recently entered the German market and is looking to expand, with the asset’s exemplar environmental credentials providing strong appeal.
- What next The deal is likely to complete in the second half of the year.
KKR and Mirastar have agreed their second deal in Germany as the duo seek to expand their presence in the country, Green Street News can reveal.
The private equity firm and its investment and asset management partner is understood to have struck an agreement with logistics giant Maersk to buy its flagship warehouse at the Port of Duisburg for around €60m.
The off-market transaction involves a long-term leaseback agreement with Maersk, with KKR and Mirastar buying the long-leasehold ownership, and Port of Duisburg retaining its freehold. The deal is due to formally complete in the second half of the year.
The 43,000 sq m (463,000 sq ft) asset was developed on balance sheet by Maersk and completed towards the end of 2023. It has exemplar sustainability credentials, featuring special building insulation, heat pumps and a roof-mounted photovoltaic system, meaning it has a BREEAM Excellent rating.
In Duisburg the partners are deploying capital from KKR’s core-plus strategy, which also funded their debut acquisition in Germany last summer – a 49,000 sq m warehouse in Hanover from Union Investment.
Value to be found
KKR and Mirastar had previously held back from deploying capital into the tight-yielding German logistics market prior to interest rate rises and broader pricing readjusting. They are now looking to deploy more aggressively, with Mirastar recruiting Alexander Frenken from Nuveen as a director last October to be responsible for new acquisitions, deal sourcing, and supporting asset management and leasing activities throughout the country.
In an interview with Green Street News last July, KKR’s German head of real estate Jan Baumgart said: “Until the interest rate turnaround, we saw better opportunities in the UK and the Netherlands than in Germany, where the logistics market was characterised by very low yields. That has now changed, as the prime initial yields have risen by 100 to 150 basis points.”
CBRE advised Maersk.
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This article first appeared in Green Street News on 21st January 2025 and was written by David Hatcher.
