LIP Acquires Logistics Property in Kitzingen and Leases to BLG

LIP Invest has acquired a recently constructed distribution center from the project developer Scannell Properties for one of its logistics funds. The new building in Kitzingen, located in the technology park conneKT 38, has been leased to the logistics service provider BLG LOGISTICS upon completion. The usable area of the facility amounts to 16,400 square meters.

(Munich/Kitzingen) LIP secured the property in an off-market transaction from Scannell Properties, which was also the seller of the property. Goldbeck acted as the general contractor. LIP was technically supported in the acquisition process by albrings+müller, legally by REIUS, tax-wise by Ebner Stolz, and in the ESG due diligence by ES EnviroSustain.

On a 32,200 square meter plot, Scannell Properties constructed 6,000 square meters of outdoor space as well as a logistics property with a total rental area of 19,000 square meters. The hall area of 16,400 square meters can be divided into two separate units and is complemented by 1,600 square meters of mezzanine and 1,000 square meters of office and social areas. The floor load is 5 tons per meter with a ceiling height of 12 meters. The property is served by 18 loading docks, two of which are equipped with jumbo loading bridges, and two ground-level access gates. The property features 52 car parking spaces, 5 truck parking spaces, and 40 covered bicycle parking spaces.

Distribution Center with Central Location

Scannell Properties constructed the property speculatively in Kitzingen, Lower Franconia, east of Würzburg. Immediately upon completion, the developer fully leased it to BLG Handelslogistik, a subsidiary of the BLG LOGISTICS Group, which handles its logistics contract for Puma there. The distribution center is suitable for contract services to supply the regional industry as well as for logistical processing in the growing online business. The tenant benefits in operational operations from the late cut-off times in the region: Due to the central location within Germany, shipments can be accepted late and still delivered the next day. Given the many location advantages, Scannell Properties will also develop further real estate projects on adjacent plots in the coming months.

“The technology park Kitzingen is designed for 24/7 use. This enables rapid package distribution, especially since DHL operates a distribution center in the north of Kitzingen. There, shipments can be fed into the German parcel network particularly quickly. The new building is also optimally connected to the highway network via the A3 and A7 and is characterized by quick accessibility to the surrounding metropolitan areas, such as the Rhine-Main area or Nuremberg,” says Bodo Hollung, Managing Director and Partner of LIP Invest. Additionally, the nearby port of Würzburg or Nuremberg Airport offers multimodal transshipment options.

Promising Future Location

Geoffrey Pizzanelli, Head of Capital Deployment in Europe for Scannell Properties, describes the sold property: “We have identified Kitzingen as a promising future location in the heart of Germany, where we plan several construction projects. As the German and European logistics markets continue to boom and the competition for space remains fierce, this project was initially planned speculatively. Thanks to the excellent transport connections and the modern, sustainable facilities, the property was successfully leased even before the sale and represents a future-proof investment for LIP Invest. We thank all involved partners for their good cooperation until the successful completion of this project.”

Logistics Property with Low Primary Energy Demand

Twenty percent of the property is unsealed. It is bordered by a surrounding green strip, which is managed by a shepherd with his herd on the southern side. A lizard habitat has also been established here. The heating of the logistics property is powered by district heating from the combustion of wood chips, a renewable raw material. This results in a lower primary energy demand than conventional heating methods. Additionally, LIP will install a photovoltaic system on the roof to generate further renewable energy. Several e-charging points are available for cars and bicycles. The building received a DGNB Gold certification.

Photo: © LIP Invest