POBA, PFA, Patrizia co-invest in Europe’s $1.3 bn logistics portfolio

The Public Officials Benefit Association (POBA), Danish pension fund PFA and real estate investment firm Patrizia AG have co-invested 800 billion won ($670 million) to acquire a logistics portfolio of $1.3 billion in Europe.

They signed the deal on Dec. 5 with BentallGreenOak, an investment company, to buy 42 logistics assets which are expected to yield more than Amazon’s logistics centers generating around 4% per year, according to sources with knowledge of the matter on Dec. 11.

The 800 billion won equity investment breaks down into PFA’s 440 billion won, Patrizia’s 200 billion won through its blind-pool fund and POBA’s 160 billion won. The remainder of the acquisition cost was borrowed.

The 42 assets comprise of 17 facilities in France, 11 in Italy, 11 in Spain and three in the Netherlands, with the weighted average unexpired lease term of over seven years.

They total 1.5 million square meters, acquired between October 2016 and February 2019. Tenants include Carrefour, DHL and MediaPost Communications.

The transaction marked the first co-investment since POBA and PFA signed a memorandum of understanding in October to launch a fund of about 900 billion won ($753 million) to invest in Europe’s real estate market.

“The signing of the MOU with PFA is an importance step for making an entrance into Europe in a full-fledged manner,"CEO Gyeong-Ho Han said in a statement last week. "We will share profits by co-investing in logistics assets with high growth potential and strengthen our strategic partnership.”

By Hyun-il Lee

hiuneal@hankyung.com

(Photo: Getty Images Bank)