Leading last mile specialist initiates deployment into target core Dutch markets

Valor Real Estate Partners (“Valor”), Europe’s fastest growing last mile real estate specialist, has acquired a 24,079 sqm urban logistics property in North Amsterdam, from Aldi. It marks Valor’s debut transaction in what is one of Europe’s dominant logistics markets, and where Valor has ambitions to significantly and rapidly scale.

The single tenant property is leased to Picnic, the online grocery e-commerce retailer, with two years remaining. On expiry, Valor intends to undertake an extensive refurbishment of the property to create three individual units, replacing the roof, upgrading the dock doors and improving the overall aesthetics of the asset.

The property is strategically located just 18 minutes’ drive time from Amsterdam Central station, and benefits from its proximity to several key arterial routes and within 6km from the A10 ring road. The location’s appeal to 3PL and last mile occupiers is further enhanced by its proximity to one of the country’s largest regeneration projects, which will see the development of over 70,000 new homes by 2050 and significant infrastructure improvements.

According to Statista, the Netherlands is Europe’s seventh largest ecommerce market with over 3% of its GDP derived from online shopping . The Amsterdam metropolitan area is forecast to remain undersupplied with critical last-mile logistics space, with 500 hectares of industrial land expected to be reallocated for residential use by 2030. Meanwhile, the population is forecast to increase 16% by 2035, and 32% by 2050, driving consumer demand. Valor’s value-add strategy in the Netherlands will seek to capitalise on these structural drivers, with a geographical focus on the dominant Randstad region, as well as Tilburg & Eindhoven.

Cane Napolitano, Managing Partner, CIO, commented:

"I am pleased to announce our first acquisition in the Netherlands. The Dutch markets are witnessing a remarkable transformation in its industrial real estate sector, largely fuelled by an impressive surge in e-commerce, which currently stands at 20% nationwide with projections set to climb to close to 30% in the Randstad area by 2027. With its young, well-educated, and diverse population, the country is poised for long-term growth.

This demographic advantage, coupled with consumer spending that is 33% above the average European city and income levels 41% higher than the European average, underscores the region's vast potential. The Netherlands is an integral component to realising our AUM growth ambitions, backed by a large appetite to do more in the Randstad and A58 regions."

Matthew Ganas, Vice President, Investments, added:

“This was a unique opportunity to acquire a freehold product in one of Europe’s most densely populated major cities, where 90% of the industrial space inside the A10 will be converted to residential, resulting in an overall loss of 15% in stock over the next 25 years. Despite the current economic slowdown, this cannibalisation of supply, combined with the continued reconfiguration of supply chains, is underpinning very low vacancy rates across the Netherlands, with the high single digit rental growth witnessed in 2023 forecast to continue in the near term.”

Valor was advised by ALBA, LOYENS & LOEFF and Drees & Sommer.