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DHL sells German logistics space

   Global commercial real estate service provider CBRE has advised DHL Real Estate to sell a 15,000 square-meter warehouse facility that it’s developing in Leipzig, Germany to international property fund manager, Cordea Savills.
   The move marks the beginning of a new program around direct development by DHL Real Estate in Europe, the Middle East, and Africa.
   DHL said Leipzig is a strategic location within its European network and plans to develop nearly 67,000 square-meters of logistics space there. The company said the Leipzig facility will be leased to DHL when it is completed in July.
   “There has been strong interest from investors given the quality of this real estate, the strength of DHL, and the positive outlook for the logistics sector,” said James Markby, CBRE’s head of European industrial and logistics investment. “Backing developers and occupiers who are able to deliver a good pre-let pipeline of development can enhance performance returns further, while many of the development risks can be removed, or at least managed, and priced effectively.”
   CBRE said logistics space Europe, the Mideast and Africa is in demand because of limited supply. Many industrial and logistics firms are looking at other options like design-and-build, and pre-let development in the absence of available space.
   The company said DHL Real Estate will also sell a 42,000 square-meter warehouse development in Monchenglachbach, Germany, with additional capacity for another 42,000 square-meter extension. DHL will develop the unit and operate it on behalf of a major retail customer that will take a 10-year lease once completed.