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 210 properties with a total lettable area of 6,1m sqm and real estate assets of over €10.2 bn.
Our active and integrated 360-degree management approach overall investment profiles in these segments is operated with currently more than 290 employees at 16 European corporate locations in 10 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 modernly 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 a boots-on-the-ground approach.
Further information can also be found on our homepage: www.garbe.de/en/
Sector forecasts
INDUSTRY: Germany
Logistics real estate has been one of the most popular real estate asset classes in Germany for years. The last few years have challenged global supply chains with renewed crises like the Russian war of aggression on Ukraine. Despite high inflation and rising construction, energy and financing costs, the demand for logistics space is still high, albeit on a lower level than in previous years. Take-up has reached 2.9m sqm (HY1 2023 ). The estimated take-up of logistics and industrial is expected to be around 4m–5m sqm at the end of the year (-41% to -53% y-o-y). This is more or less what the market should complete this year. 4.8m sqm are expected to be built by the end of 2023, which is significantly behind last year’s figure (-26%). The decreased demand this year somewhat matches what is being completed in new space. Vacancies are almost non-existent and there is a structural demand surplus, even if subdued this year. The almost non-existent vacancy rate is due, among other things, to the low availability of land. The current market situation is also having an impact on the development of rents, which have been rising significantly for years. This affects existing stock as well as developments.
On the real estate investment market, logistics properties are now characterised by a higher popularity than other asset classes, even if the total investment volume is lower. However, the effects of the current interest rate rally have halted the ongoing yield compression and have even led to a significant decompression. Yield decompression will continue in the future, but at a slower pace. The yield gap to other asset classes is narrowing. Compared to the risk-free interest rate of a federal bond, however, logistics real estate can still achieve a better return.
Europe – The market situation in other European countries is largely analogous and characterised by a yield decompression in nearly all markets, shortage of space, rent increases and growing financing costs. However, the initial situation and dynamics are different, so that a pan-European investment strategy based on further rent increases and favourable entry factors leads to profitable opportunities. Parts of the formerly outsourced production will be brought back to Europe. Also, the already strong role of e-commerce is being reinforced by new suppliers entering the market like Temu and TikTok and, moreover, this market is still underdeveloped in many countries, but is expected to catch up in the future. The former fringe markets of Southern and Eastern Europe offer themselves as locations here due to the better availability of space and lower energy and wage costs. But the established core markets will also remain in demand due to their proximity to sales markets.
Investment principles & strategy
- Leading platform in Germany: GARBE, as the leading investment and asset manager in the logistics, industrial and corporate real estate sector in Germany and furthermore active in Europe, has with its 295 employees at 16 European locations, over 211 managed properties with 5.53m sqm of lettable space and a large number of project developments in an AUM volume totalling more than €10bn, 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 a deep market networking of the experienced employees and teams to longstanding local and supraregional 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 has been managing real estate assets in regulated real estate special AIFs for institutional and professional investors for around 20 years.
- Sustainability and ESG have been an integral part of our organisation, decisions and processes for more than 10 years. 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 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 tenants, 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.
Performance verification
GARBE has achieved excellent results for its investors in the past, depending on the investment strategy chosen in each case. We would be happy to provide further information about the performance and how it was achieved by GARBE in a personal conversation.
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. Insofar as the information contains forward-looking statements, these are based on current estimates and assumptions 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.
