100,000 sqm German Logistics Acquisition

13 May 2018

Acacia Point Capital structured the acquisition of a 101,500 sqm logistic facility in North Rhine-Westphalia, for one of its Middle-Eastern capital partners. The asset is 100% leased to A.T.U., Germany’s No. 1 seller of automotive parts and repairs, on a 15-year triple-net lease with inflation-linked rental growth.

The property is located in the Rhine-Ruhr, at the heart of Europe’s distribution corridor. The property is a distribution facility, purpose-built to A.T.U.’s specifications with 109 docking stations and fully automated, high-rack storage facilities. It is of strategic importance for the entire A.T.U. business as it is one of only two distribution centres serving its 577 German retail outlets. All stores in the northern part of Germany are being supplied from the property and all online sales are being handled from this location.

A.T.U was established in 1985 in Germany, Europe’s leading auto aftermarket. Today it operates 577 auto centres in Germany, 25 in Austria and 6 in Switzerland. After more than a decade of mismanagement by Private Equity ownership, in 2016, the A.T.U. business was acquired by Mobivia, a French conglomerate that specialises in the sale of automotive parts and repairs across Europe, which also owns successful brands such as Norauto and Midas. The financial turnaround of A.T.U. was further enhanced in Q1 2018, when Michelin, the world’s 2nd largest tire manufacturer, acquired a 20% stake in ATU.

Matthew Walker, Managing Director of Acacia Point Capital said “There is vast investor interest in the German logistics market given the country’s stable economy, attractive debt financing, excellent infrastructure and its central location in Europe. This is our 2nd major logistics acquisition in recent months for Middle-Eastern clients seeking long-term recurring income from sole-tenanted German logistics property. The asset was acquired at an attractive yield and delivers investors with strong cash-on-cash post-tax returns exceeding 10% p.a. Further logistics assets are being sought in Germany and the Netherlands to meet strong investor demand.”

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