The largest logistics center serving Swedish fast-fashion retailer H&M has been sold by CA Immo for more than 100 million euros, or $112.9 million.
The Austrian property group announced the news Thursday, noting that the 1.23 million-square-foot facility in Hamburg-Allermohe in northern Germany was bought by funds controlled by South Korea’s ADF Asset Management. The exact purchase price was not disclosed but CA Immo said the center sold for above market value.
“We are investing these revenues, for instance, in building new, modern office properties in Berlin, Munich and Frankfurt. In doing so, we are continuously increasing the quality of our office portfolio and the efficiency of managing existing properties,” said Bruno Ettenauer, chief executive officer of CA Immo.
The deal is expected to close by the end of the year.
Efficient logistics are crucial to H&M’s flow of goods; shipments go directly to distribution centers in each of its markets to support stores in their geographic vicinity independently of national borders. According to the retailer’s website, stores do not have back-up stocks but are replenished as required from the distribution centers.
As of May 31, H&M had 447 stores in Germany, its largest market globally.