Ivanhoé Cambridge partners with NVELOP to expand its logistics portfolio in Germany

Ivanhoé Cambridge, the global real estate firm, strengthens its commitment to the German logistics market by partnering with the logistics real estate specialist NVELOP. With NVELOP as a specialized developer, investor and manager of logistics and industrial real estate as well as data centers in Germany and Europe, Ivanhoé Cambridge continues to expand Hub & Flow, its continental European logistics portfolio which aims at building a platform of logistics properties along key supply chains.

Ivanhoé Cambridge plans to invest in logistics real estate opportunities from development to core-plus in Germany. NVELOP will provide project development expertise and be responsible for asset management of the properties. Ivanhoé Cambridge aims to deploy around €200 million in its first investment phase, with the potential for further investment phases.

In line with the stated strategy, Ivanhoé Cambridge has made its first investment, acquiring a prime 72,000 sqm logistics development project in the Frankfurt market.

Christian Daumann, Vice President, Head of Investments, Germany, Ivanhoé Cambridge commented: “We are pleased to team up with an experienced project developer with whom we can optimally leverage opportunities in the German logistics real estate market. Based on a long-lasting relationship with the founders of NVELOP, we are convinced we can jointly identify and implement development opportunities with a strong emphasis on large-scale developments. Furthermore, this partnership demonstrates our strong ambition in the logistics market in Europe, a major focus of our strategic plan.”

Logistics properties have become a mainstay for a future-proof real estate portfolio. The sector has been benefiting from two structural trends, urbanization and the ongoing digitalization of the economy which has accelerated significantly with the pandemic. Ivanhoé Cambridge’s European logistics operations allows it to create and own assets that are essential to the current evolution of the supply chain throughout Europe.

Artie Ioakim, co-founder and Chief Investment Officer, NVELOP, added: “We are very proud to be partnering with Ivanhoé Cambridge to launch NVELOP’s first programmatic development partnership. We look forward to working together to capture the opportunities and strong long-term dynamics we see in the German logistics property sector.”

Ivanhoé Cambridge’s logistics strategy in continental Europe was initiated with the Hub & Flow portfolio in February 2020 and, most recently, the company acquired an approximately 115,000 square-meter logistics property in Hamburg. This portfolio complements Ivanhoé Cambridge’s European logistics operations, such as the partnership with PLP for the development of first-class logistics properties in the United Kingdom and the collaboration with URBZ Capital as part of its strategy dedicated to last-mile logistics in Europe.