Hillwood Investment Properties (“Hillwood”) has closed a €55.1 million development financing facility with an investment vehicle managed by Morgan Stanley Investment Management’s (MSIM) European Real Assets Private Credit platform for two industrial logistics assets in Germany totalling approximately 62,500 sq m of modern warehouse space. The facility is structured across two sub-facilities: a €33.1 million Karlsruhe facility and a €22.0 million Westfalica facility.
The Karlsruhe project involves the demolition of existing structures and the ground-up construction of a c. 30,000 sq m warehouse on a freehold site in one of southern Germany’s established logistics corridors. The Westfalica project comprises the comprehensive refurbishment of an existing 20,800 sq m warehouse and the construction of an 11,750 sq m extension, creating a modern logistics campus in North Rhine-Westphalia. Both developments are targeting DGNB sustainability certification.
Armin Senoner, Director of Debt Markets at Hillwood Investment Properties, said: “We are pleased to have partnered with Morgan Stanley on this financing, which reflects the depth of our lender relationships across European private credit. With over 900,000 sq m developed in Germany to date and a growing pipeline of speculative logistics projects, we see strong momentum for Hillwood’s development strategy in the country’s key distribution corridors.”
Katy Garland, Executive Director, European Real Assets Private Credit, added: “We are delighted to have completed a financing with Hillwood, who have a depth of experience in developing logistics assets in Germany. This transaction demonstrates our commitment to supporting strong sponsors and financing high-quality assets in strategically important logistics hubs”
About Hillwood Investment Properties
Hillwood is a global logistics real estate platform with a 30-year track record, having acquired and developed over 29 million sq m across six countries. In Europe, Hillwood has been active since 2013 and has deployed more than €5.1 billion across the UK, Germany and Poland, with approximately 0.9 million sq m of logistics space developed in Germany alone. The platform operates from 12 offices globally with over 400 associates.
About Morgan Stanley European Real Assets Private Credit
European Real Assets Private Credit is part of Morgan Stanley Investment Management’s Real Assets platform which manages over $75 billion of investable capital globally across real estate and infrastructure equity and credit strategies. Established in 2017, European Real Assets Private Credit manages approximately $4 billion of investable capital across Investment Grade and Value-Add strategies, and provides senior and whole-loan financing to institutional sponsors across the continent.