With GARBE Industrial Real Estate GmbH and other subsidiaries, GARBE is a fully integrated, market-leading real estate management platform for logistics and corporate real estate in Germany and Europe. In these segments, we currently manage over 180 properties with a total lettable area of 4.5m sqm and real estate assets of over €7bn.

Our active and integrated 360-degree management approach over all investment profiles in these segments is operated with currently more than 200 employees at 14 European corporate locations in seven countries in the areas of project development, fund/portfolio management, investment and property management including asset and property management

We have been providing these management services in the field of logistics and corporate real estate for over 30 years for a variety of different, predominantly regulated investment vehicles and mandates such as separate accounts, commingled funds and joint ventures for mainly institutional (professional) investors with German and European investments.

Since then, GARBE has developed into a modern organised and international company for institutional investors that is active in all relevant logistics real estate and adjacent areas such as the development of data centres or photovoltaic plants.

As a proven and market-leading specialist in logistics, industrial and corporate real estate, GARBE will continue to focus on these segments throughout Europe and further expand its growth strategy and activities with an booth-on-the-ground approach. Within this frame- work, we are continuously developing attractive real estate projects, rental space offers for tenants and actively managed investment strategies as well as ESG fund solutions for our investors.

Further information can also be found on our homepage: www.garbe.de.

Sector forecasts

INDUSTRIAL: Germany – Logistics real estate has been one of the most popular real estate asset classes in Germany for years. The Corona-related economic downturn has hardly affected the logistics sector. The growth of e-commerce was even accelerated by it. The demand for logistics space is increasing annually and will reach a new record at the end of 2021 (7m sqm). This is far more than the market can realise per year, even though the volume of new construction is rising steadily and over 5m sqm will be built by the end of 2021. But even this peak performance is not enough to compensate for the demand. Vacancies are almost non-existent and there is a structural demand overhang. This is because fewer and fewer plots are available. For this reason, second-tier markets are becoming increasingly sought-after.

The market situation is also having an impact on the development of rents, which have been rising significantly for years. This trend will continue in the future and pick up speed.

On the real estate investment market, logistics properties are now character- ised by a higher popularity than other asset classes, even if the total investment volume is still lower. The massive increase in demand is leading to a significant yield compression. The yield gap with other asset classes is narrowing. Compared to the ‘risk-free interest rate’ of a federal bond, however, logistics real estate can still achieve a good return.

The demand for logistics real estate is secured in the long term. Important drivers in this context are e-commerce, but also the increasing outsourcing of parts of the industrial value chain to logistics service providers. This trend will continue in the future and secure the cash flows from leasing.

Europe – The market situation in other European countries is largely analogous and characterised by yield compression, shortage of space, rent increases and similar features. However, the initial situation and dynamics are different, so that a pan-European investment strategy based on rent increase opportunities and favourable entry factors leads to profitable opportunities.

Future demand potential also arises from e-commerce, but also from reshor- ing and nearshoring trends. Parts of the formerly outsourced production will be brought back to Europe. At the same time, strategic warehouse reserves are being created again to secure the supply chains. Southern and Eastern Europe offer themselves as locations here due to the better availability of space and the lower wage costs. But the established core markets will also remain in demand due to their proximity to sales markets and high purchasing power as well as highly efficient logistics and infrastructure.

Investment principles & strategy

Leading platform in Germany and Europe: GARBE, as the leading investment and asset manager in the logistics, industrial and corporate real estate sector in Germany and Europe, has with its 200 employees at 14 European locations, over 180 managed properties with 4.5m sqm of lettable space and a large number of project developments in an AUM volume totalling more than €7bn, a first-class track record.

Fully integrated 360-degree management approach: with market-leading expertise across all value-added areas in the fields of project development, investment management, asset management, including property management and fund and portfolio management, with broad and deep market networking and perception in the markets and longstanding relationships with, among others, regional and international tenants, brokerage houses, asset and portfolio owners, banks/financiers and authorities

Excellent access to investment opportunities and reliable execution: through a local ‘boots-on-the-ground’ approach with the deep market networking of the experienced employees and teams to longstanding local and supra-regional as well as international partners (tenants, brokers, asset owners, banks, etc) as an important pillar of the continuous deal flow, preferably off-market.

Comprehensive experience in regulated fund, portfolio, investment and asset management for industrial and corporate real estate: GARBE hasbeen managing real estate assets in regulated real estate special AIFs for institutional and professional investors for around 20 years.

Sustainability and ESG has been an integral part of our DNA for more than 10 years: as part of our organisation, decisions and processes. The impact of our business activities on the environment and society is an important part of our corporate culture and links our actions to our environmental/social responsibility.

GARBE: as an independent group of companies, has an efficient organisation and processes and can implement decisions and solutions for investors flexibly and with agility without internal group coordination processes and interests.

Strategic corporate development

As a proven specialist and market-leading platform for logistics, industrial and corporate real estate in Germany and Europe, GARBE will continue to focus on these segments throughout Europe and further expand its growth strategy and activities in Europe. Within this framework, we are continuously developing attractive real estate projects and rental space offers for users as well as actively managed investment strategies and fund solutions for our investors, such as the European GARBE Logistics Real Estate Fund Plus III at present. With our local boots-on-the-ground approach across Europe and by leveraging our well-resourced, dedicated responsible investing teams, we aim to increase also the number of ESG, sustainable and impact strategies to meet the increasing demand of our clients. In parallel, we will further expand other related business areas such as the development of data centres and photovoltaic systems.

COMPLIANCE STATEMENT

GARBE Industrial Real Estate GmbH has compiled the contents of this information with care. Despite all due care, the data and content may have changed in the meantime. Therefore, GARBE Industrial Real Estate GmbH does not assume any liability or guarantee for the timeliness, accuracy and completeness of the information provided. Excluded from this is the liability for own gross negligence or intent. In so far as the information contains forward-looking statements, these are based on current estimates and assumptions made by the made by GARBE Industrial Real Estate GmbH and are subject to a number of risks and uncertainties that could cause a forward-looking estimate or statement to be subject to certain uncertainties and to change. Any use of the information or of individual items of proprietary information information, data and images contained in the information, as well as the data and images contained in the information, as well as any editing or requires the express prior consent of GARBE Industrial Real Estate GmbH.