RLI Investors secures long-term lease on over 40,000 square metres to existing tenant
RLI Investors (RLI), an independent asset and fund manager and specialist in logistics property, acting on behalf of the RLI Logistics Fund–Germany II, has agreed a long-term lease on 40,400 square metres of logisticsspace in Dormagen, North Rhine-Westphalia, to the existing tenant, a well-known logistics service provider. This is one of the largest lettings of an industrial or logistics property in the North Rhine-Westphalia logistics region and the largest in the Dusseldorf economic region so far this year.
RLI acts as asset manager of the property, which comprises four halls with a total lettable area of around 40,400 square metres. It occupies a 107,000 square metre site in the “St. Peter” commercial area, providing sufficient space for an extension. RLI already has plans to increase the density of the site by developing additional modern logistics accommodation. The tenant has been handling the distribution business for a well-known German technology company from its Dormagen location since 2014. The tenant wants to commit to the location in the long term and has already shown interest in renting part of the forthcoming extension.
“Thanks to active letting management, since ownership of the property was handed over at the end of August 2018, we have secured the occupancy of the accommodation and retained the existing tenant, an excellent covenant, for the long term. In order to make the location even more attractive for the tenant and to increase the value of the property, we are planning to invest a six-figure amount, says Sandra Martel, asset manager at RLI.
The portfolio of the RLI Logistics Fund–Germany II includes 15 properties in Germany, with a total value of around EUR 300 million. Final closing of the Fund is expected during the course of the year.
Realogis Immobilien Düsseldorf GmbH advised on the letting.
In aggregate, RLI currently acts as asset manager of 35 properties, with a total area of over 1.2 million square metres.