Garbe and a fund managed by BlackRock develop brownfield site in Salzgitter for large-scale logistics

News 05/09/2024

Salzgitter/Hamburg, 5. September 2024 – Garbe Industrial Real Estate GmbH in a joint venture with a fund managed by BlackRock, have acquired a brownfield site of almost 200,000 square metres in Salzgitter, one of the most important industrial locations in Lower Saxony. The joint venture wants to create settlement potential for large-scale logistics on the site. The construction of the logistics property with a total floor area of 70,000 square metres is scheduled to start in the first quarter of 2025 and to be completed in 2026.

The purchase is one of the first projects of the joint venture that Garbe Industrial Real Estate has entered into with a fund managed by global asset manager BlackRock. The aim of the joint venture is to build up a portfolio of logistics and commercial properties with strong sustainability characteristics. New buildings as well as existing properties to be modernised in Europe – primarily in Germany and France – are being considered.

The seller of the property in Salzgitter is the Hagedorn Group. It specialises in revitalising brownfield sites and creating building rights. The company has redeveloped more than 3.5 million square metres of brownfield land to date.

Gypsum fibreboards were manufactured on the site from 1971 to 2003. The production buildings have now been demolished and the floor has been renovated. “Transforming sealed, unused areas into modern, sustainable properties is our strategic approach. We have been working successfully with Hagedorn for years to achieve this goal,” says Adrian Zellner, Member of the Executive Board of Garbe Industrial Real Estate.

A property with a hall area of 63,000 square metres is planned. In addition, there will be 4,000 square metres of storage space on mezzanine floors and 3,000 square metres for offices and social rooms. The new building will be equipped with 65 dock levellers and 19 ground-level gates. Parking spaces for 200 cars and 20 trucks are planned for the outdoor area. The property will be built in such a way that it meets the requirements of traditional logistics service providers, but also satisfies the needs of potential users from the automotive sector. Side loading and unloading options under a canopy, for example, contribute to this. In order to be able to store batteries for electric and hybrid vehicles, which are classified as water-polluting substances, a waterproofing foil is to be installed under the floor slab in accordance with the Water Resources Act (WHG).

The new property is being built in accordance with the BEG-40 (Federal Funding for Efficient Buildings) standard. The building therefore only requires 40 percent primary energy compared to a reference building. A photovoltaic system is planned for the entire roof area to generate renewable energy. Garbe Industrial Real Estate is aiming for certification according to the Gold Standard of the German Sustainable Building Council for the property. The new building will be located in a 35,000-square-metre forest that is already located on the site.

“Although we are developing the project with a view to the future, we expect full occupancy during the construction phase due to the high demand,” emphasises Adrian Zellner. “The main reason why there is so much interest is that we are creating settlement potential for large-scale logistics and a wide range of uses through high-quality construction – and at an attractive location in a very good location south of the Hanover, Wolfsburg and Braunschweig city triangle.”

The new building is being constructed in the Salzgitter-Heerte district, just a few kilometres from the A 39. It connects the location to the north with Braunschweig and Wolfsburg as well as the A 2 Dortmund – Berlin motorway, and to the south with the A 7 Hamburg – Ulm motorway. This means that the planned property is connected to both the east-west and north-south axes. The Salzgitter-Watenstedt junction can be reached in four minutes without driving through the town. Renowned companies from the automotive industry and the rail technology and logistics sectors have already settled in the vicinity.