abrdn European Logistics Income divests German assets for €66m

abrdn European Logistics Income has divested two modern, high-quality logistics properties in Germany for roughly €66.5 mln as part of its managed wind-down.

logistics

The multi-let warehouses, located in Flörsheim and Erlensee, near Frankfurt, achieved a sale price approximately 10% above their Q1 2025 valuation. 
The 26,700 m2 property in Erlensee was developed in 2018, while the 17,809 m2 Flörsheim asset was the company's first acquisition after its launch in 2018.
The recent property sales by abrdn European Logistics Income have significantly impacted its debt profile. The company's fixed-rate debt, which stood at €218 mln with a 1.93% interest rate as of March 31, has been reduced to €176.8 mln. This was achieved through SPV disposals that transferred €30.2 million in DZ Hyp Bank debt and the repayment of an €11 mln Berlin Hyp loan. The resulting all-in interest rate on the remaining debt is 2.05%.
Following shareholder approval for a managed wind-down, abrdn European Logistics Income's primary objective is to sell its portfolio assets in an organized way and return the proceeds to shareholders after debt repayment. 
The company is in advanced talks to sell fifteen more assets through individual sales and portfolio deals, with contracts expected in the coming weeks. Subject to successful sales and debt repayment, a second capital distribution to shareholders is anticipated by mid-August 2025. The remaining seven assets are in various stages of the sales process, targeting completions from Q4 2025 onwards. 
To maximize value before sale, the Investment Manager continues to actively manage the assets and engage with tenants.