M&G Real Estate snaps up logistics centre in Frankfurt for €73m

M&G Real Estate has acquired a logistics centre near Frankfurt Airport for €73.2 mln from global private equity real estate company Taurus Investment Holdings.

Logistics

The 32,690 m² property in Gross-Gerau includes three logistics halls and 185 parking spaces. The asset is fully leased to multinational cash & carry retailer Metro Group and airline catering and hospitality provider DeSter Gategroup.
It represents a strategic addition to the M&G European Property Fund, reflecting the fund's focus on logistics and residential assets. The acquisition highlights the increasing institutional investor interest in the logistics sector, particularly in key hubs like the Rhine-Main region.
The property, located in the Rhine-Main region—a key logistics hub in Germany and a gateway to global trade—is aiming for a BREEAM In-Use "Very Good" rating.
Thomas Kächele, Head of Germany and Central Eastern Europe at M&G Real Estate, commented: "Given stable yields and the expectation of further interest rate cuts, the outlook for real estate is positive. Structural demand is expected to lead to rental growth in the preferred sectors, including logistics. We also expect the sector in Germany to receive a boost from the recently adopted €500 bn infrastructure and climate package. The acquisition in Groß-Gerau is in line with the M&G European Property Fund's strategic objective of expanding its portfolio through selective acquisitions, particularly in the logistics and residential sectors."
The M&G European Property Fund is one of the largest and most diversified open-ended real estate funds for Europe, excluding the UK.