Palmira Capital Partners (Palmira), one of the leading European investors and asset managers of logistics and corporate real estate, has made its first investment for the Palmira UIC 2 fund (Palmira Unternehmensimmobilien Club 2) in the form of a sale-and-leaseback transaction on a 10,400 square metre property in Radebeul near Dresden.
The asset, a corporate property, completed in 2006, occupies a site of around 17,500 square metres and provides a lettable area of approximately 7,800 square metres of storage and production space and 2,600 square metres of offices and staff rooms. The property is fully let on a 15-year lease.
Palmira was advised on the legal and tax aspects of the transaction by Dentons, Dusseldorf. Duff & Phelps acted as consultant on technical details. Nova Ambiente was responsible for environmental aspects and Westbridge for ESG monitoring.
Palmira UIC 2, which is aimed at institutional investors, has a target equity capital volume of around EUR 250 million and a total investment volume of around EUR 450 million is possible. To date, equity commitments of EUR 150 million have already been made. Half of the total has been subscribed by investors who had already participated in the predecessor fund Palmira UIC 1.
Palmira UIC2, the company's third corporate real estate fund, aims to establish a broadly diversified portfolio across regions and sectors. The focus is on commercial parks, small-scale office parks and production properties in Germany. The planned distribution yield is 6.25% p.a.