Local property trust DB RREEF has spent $600 million on Whirlpool logistics facilities across the globe.
The major boost to the DB RREEF Trust international property portfolio includes new investment and building program with US-based Whirlpool Corporation for 11 new global logistics facilities across the USA, Canada and Poland.
The agreement with Whirlpool will eventually see DB RREEF progressively acquire over a three year period nine state-of-the-art industrial distribution facilities in the USA and Canada as well as two factory distribution centres in the USA and Poland, totalling approximately 10 million sq ft.
Each of these centres will be fully leased to Whirlpool for 10 years, with a further four, 5-year options.
”The acquisition of the Whirlpool portfolio is a major step forward in our strategy to provide investors with exposure to quality international assets spread across geographic regions and asset classes,” said DB RREEF CEO, Victor Hoog Antink.
“Upon completion, the $A600m program will increase DRT’s international property exposure from 22% to 26%,” he said.
“This significant off-market transaction with Whirlpool further demonstrates the benefits of leveraging off RREEF’s global platform,” he added.
Whirlpool is the world’s leading manufacturer and marketer of home appliances and is ranked number 152 on the 2006 Fortune 500 list with worldwide sales in excess of $US19 billion per annum.
The first distribution centre of 500,000 sq ft is currently under construction and due for completion in the first quarter of 2007. Further sites have been secured for a distribution centre of 500,000 sq ft to be built in Toronto, Canada ad two factory distribution centres to be built in the Midwest, USA and Wroclaw, Poland. Site selection for the other seven distribution centres to be located in the USA and Canada, is well advanced ranging in size from 300,000 sq ft to over 1,000,000 sq ft.
Whirlpool Corporation’s Director of Global Corporate Real Estate, Lee Utke said the investment program gives Whirlpool maximum flexibility with respect to the ultimate location and size of the individual distribution centres.
“We look forward to partnering with DB RREEF and RREEF in rolling out our new generation logistics facilities across the world.”
RREEF, on behalf of DRT, will assist in site selection, design, and ongoing property management of the Whirlpool portfolio. During the portfolio’s acquisition phase, DRT will be Whirlpool’s exclusive equity investor for new distribution warehouses in the agreed Whirlpool markets.
The acquisition of the portfolio will be progressively funded using a combination of local currency denominated debt and proceeds from future distribution reinvestments, underwritten by Deutsche Bank.
The announcement of the Whirlpool program follows DB RREEF’s June announcement of a $120m acquisition of a portfolio of industrial properties in France, after a competitive bid process, again leveraging off the RREEF global platform.
By Nelson Yap
