Burstone Europe (“Burstone”), the European platform of international real estate business Burstone Group, has completed a major 46,000 sqm lease regear to Geodis, the transport and logistics supply chain specialist, at its single-tenant Grade A warehouse in Carpiano, Milan.
Geodis has agreed a new six-year lease, expiring in 2029, which will generate €2.5 million of annual rent, equating to circa €54 per sqm, 10.6% above the previous passing rent. The warehouse serves as Geodis’ key distribution hub under its fully integrated model with a global e-commerce business’ third-party marketplace, providing drop shipping for its customers across Milan.
In line with Burstone’s value-add strategy, the letting follows a significant investment into the property ahead of the lease renewal.
Carpiano is located 15 kilometres southeast of Milan, with the city centre reachable in 30 minutes, giving access to the 1.4 million residents. It benefits from excellent arterial connectivity, adjacent to the A1, which connects northern and southern Italy.
Burstone Europe currently manages a portfolio of 32 properties located around key European urban centres in seven countries, with 77% focused in Germany, France and the Netherlands. The 1.2 million sqm portfolio is 99% occupied by 110+ tenants, mainly spanning the storage, and logistics.
Underpinned by growing demand from logistics operators (especially 3PL firms), take up of new warehouse space in Italy during Q2 2023 increased 20% year-on-year to near record levels. The Metropolitan City of Milan saw the second highest take up of all Italy’s provinces in the same period, whilst there is a limited supply of space being delivered into the market.
Paul Rodger, Managing Director, Burstone Europe, commented: “The supply of institutional quality warehouse space in Europe’s most dense urban centres remains very tight, driven by a combination of nearshoring demands and e-commerce penetration, which requires businesses to be within ever closer drive time of consumers, and the restrictive financing backdrop. Burstone Europe has a widespread network of on-the-ground experts on the Continent who have a deep insight into the trends driving occupier decision making, which, as this transaction demonstrates, is enabling us to capture the attractive reversion across our portfolio.”
Source : Company