Goldman Sachs Asset Management acquires five logistics assets in Finland

29 January 2024

Goldman Sachs Asset Management has acquired five last-mile logistics assets in Finland spanning 134,000 square meters of leased space across Tuusula (in the Helsinki Metropolitan Area, nearby Helsinki Airport), Tampere, Oulu and Kuopio. The portfolio is wholly let to Posti Group, the main Finnish postal service and a third-party logistics services provider. The State of Finland is the sole shareholder of Posti Group.

The portfolio consists of high-quality, strategically located assets in key population centres and near arterial highways. Goldman Sachs Asset Management aims to work closely with the tenant to upgrade the ESG characteristics of the assets, primarily by improving their energy efficiency and carbon intensity and with a view to improving performance on BREEAM, EPC and CRREM-alignment standards.

Guttorm Hunskar, Executive Director in Real Estate at Goldman Sachs Asset Management, said: “This investment is consistent with our strategy to focus on high-quality assets in strategically attractive sectors that can benefit from value creation efforts. We look forward to executing on a detailed plan to upgrade the efficiency and sustainability of the assets in partnership with the tenant and other stakeholders. The investment also reflects our conviction and unique sourcing capabilities in European last-mile logistics.”

Real estate investor and fund manager Cromwell Property Group (ASX:CMW) has been appointed asset and property manager of the portfolio. Commenting on the acquisition, Pontus Flemme Gärdsell, Head of Northern Europe at Cromwell Property Group, said: “With all assets leased to a strong covenant, we believe Goldman Sachs Asset Management has made an excellent investment into the Nordic logistics market. We anticipate more transaction activity this year in Finland and the Nordics more broadly as inflation continues to come down and we have a better understanding of the impact of the ongoing war in Ukraine. Over the past 12 months, we have seen a heightened interest from overseas investors in well located logistics assets across this region.”

Macquarie Asset Management managed the portfolio and transaction on behalf of funds managed by Inmark Asset Management, and was advised on the sale by Knight Frank Croisettee. Richard Laird, Co-Head of European Capital Markets at Knight Frank said: “We are pleased to have advised on what we understand to have been the largest commercial real estate transaction in Finland in 2023. These are functionally excellent assets situated in highly strategic locations.”

The Nordics represents one of Europe’s most established markets for logistics assets and is supported by strong operating fundamentals, including resilient demand, limited supply, and low vacancy rates. Goldman Sachs Asset Management and Cromwell Property Group look forward to continuing to build-out a carefully curated logistics presence in Northern Europe over the years to come.

Source: Goldman Sachs AM
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