SEGRO has acquired a 1.9-hectare site in Essen, currently used by DHL as a parcel distribution centre. In the medium to long term, the property is to be modernised or replaced by a modern business park. The seller is a closed-end real estate fund, which was advised on the sale by commercial property broker Brockhoff INVEST. The purchase price has not been disclosed.

With this acquisition, SEGRO is continuing its strategic land purchases in Germany. It is the company’s fourth investment since October 2021. At that time, it acquired a 52,000-square-metre site in Frechen near Cologne, where SEGRO Park Frechen, with more than 30,500 square metres of lettable space, is planned. In December, SEGRO acquired 63 hectares in Berlin to expand SEGRO Park Berlin Airport by a further 140,000 square metres of lettable space. Most recently, in February 2022, the company announced the acquisition of a 20,000-square-metre site in Mörfelden near Frankfurt, where a modern business park is planned.

“By successfully implementing our acquisition strategy, we are laying the foundations for our future growth in Germany and showing that, despite the intense competition for attractive sites, we can succeed as a buyer,” says Jim Hartley, Managing Director Northern Europe at SEGRO.

SEGRO’s acquisition profile includes greenfield and brownfield sites designated for commercial or industrial use, or with potential for such designation. The company is flexible about occupancy, acquiring properties ranging from fully vacant to fully let; sale-and-leaseback transactions are also possible. For sites suitable for business parks, SEGRO is particularly interested in Germany’s top 7 metropolitan areas.