The UK, the largest logistics market in EMEA, saw a 7% increase in industrial and logistics investment to €2.3bn, according to the EMEA markets snapshot from CBRE - EMEA Industrial & Logistics Market Snapshot.
Industrial and logistics investment was the stand-out performer across the EMEA region in Q1 2018, reporting a 21% increase in volumes to €7.6bn, continuing the momentum after a fourth successive record year for European industrial volumes in 2017. By comparison, total European property volumes increased just 1% across all sectors.
The best performers were Spain, where volumes doubled, Italy up 72% and Germany, 39% higher at €1.9bn. Nordic volumes also doubled to €1.5bn.
Capital inflows into the European industrial sector reached €44bn in the 12 months to March 2018, a 74% increase YoY. This was largely driven by the takeovers of Logicor by the China Investment Corporation in 2Q17 and Gazeley by GLP in 4Q17. Indeed, volumes from Asia reached €15.8bn in the period, up from just €2.5bn in the previous 12 months. There was also a 19% increase in domestic volumes to €17bn, and a 67% jump in European cross border volumes to €5.5bn.
Mark Cartlich, Senior Director, Industrial & Logistics, Capital Markets, EMEA commented: “Continuing the momentum from a record year of industrial investment volumes last year, I&L was the standout performer in Q12018 with €7.6BN invested in the sector – a 21% increase on Q1 2017. The sector has clearly established itself as a core institutional asset class for global investors and we anticipate interest being maintained throughout 2018.”