Goodman to develop retail logistics centre for METRO GROUP in Marl, Germany

Goodman Group, a global leading owner, developer and manager of industrial real estate, announces the development of a new logistics centre for METRO GROUP with a total building area of 235,000 sqm and a firm 10-year lease. Goodman is investing around €200 million in this project. The logistics centre will be completed in March 2018.

METRO GROUP is one of the leading wholesale and retail companies in the world. With a turnover of €59 billion in the 2014/2015 financial year, the Düsseldorf-based company employs more than 220,000 staff in 29 countries. Announced in July 2015, the new location in Marl is part of a fundamental consolidation and modernisation of its logistics network as outlined in its new logistics strategy for German market announced in September 2015. At the site, the company intends to create up to 1,000 jobs.

The new logistics centre of METRO GROUP, with two independent buildings, will service the Real self-service stores and the German wholesale markets of METRO Cash & Carry. The goods will be delivered from Marl to the markets mostly in the western region of the country and in some cases nation-wide.The logistics services will be undertaken by the group’s in-house logistics business, METRO LOGISTICS, allowing the retailer to efficiently manage the flow of its range of over 20,000 food and household products.

"Goodman has provided us with an optimal solution that will enable us to complete our new logistics network of METRO Cash & Carry and Real and to ready the company for future growth," said Jeroen Janssen Lok, responsible for the METRO GROUP's logistics strategy in Germany as Group Director Strategy Logistics. "New, modern logistics centres, a stronger centralisation of the goods flows as well as adaptations at existing locations, will significantly enhance product availability, quality and freshness. With the new site in Marl we meet our strategic requirements for modern and competitive logistics."

"In collaboration with the city of Marl, through a comprehensive process, we are developing this excellent logistics site where the new logistics centre will be created," added Christian Mielke of METRO Properties, who managed the location search, property development and investor selection for METRO GROUP.

High quality property in prime location

The new 235,000 sqm development by Goodman will span two buildings of 83,000 sqm and 152,000 sqm respectively. Overall, the site will have around 225,000 sqm of warehouse space, complemented with 10,000 sqm of office and social areas. The buildings meet all requirements for high-quality grade-A building standards, with flexible units to optimize operational requirements. Furthermore, LED lighting throughout ensures that the logistics centre will receive a gold certification from the German Sustainable Building Council (DGNB) after completion.

"The complexity of this development as seen by its size, the land conversion and the technical requirements of the buildings, demonstrates the innovative solutions possible when working closely with the customer and our local stakeholders, in particular the City of Marl," said Christof Prange, Head of Business Development for Goodman Germany. "We look forward to our successful cooperation with METRO GROUP as the long-term owner of the property. We would also like to thank EVONIK for their support during the early stages of this project, resulting in mutual benefits for all parties involved."

According to the latest bulwiengesa study "Logistics and Real Estate 2016", the Rhine-Ruhr region is one of the ten most attractive logistics regions in Germany. With around 500,000 sqm of logistics space under management for customers from various industries, the new development will further strengthen Goodman’s already strong footprint in this prominent region.

Strength of North Rhine - Westphalia

Accounting for more than a fifth of total German gross domestic product, North Rhine - Westphalia is one of the most significant economic regions not only in Germany but across Europe. METRO GROUP will benefit from the regions 2,200 km of expressways, with links to all major cities in the federal state as well as the European expressway system. With the highest rail network density in Germany and access to the Rhine River, the location is perfect to meet the logistics needs of METRO GROUP.

"METRO GROUP's selection of Marl underlines the attractiveness of the region for high quality logistics. Furthermore the new investment will help boost growth and employment and serves as an excellent example of successful collaboration between companies and local authorities," remarked Werner Arndt, Mayor of Marl.

"The project is a clear statement for the Northern Ruhr area. It also shows the success of a constructive cooperation between all responsible authorities in the region to achieve common objectives", added Cay Süberkrüb, Head of the District Recklinghausen.

Brokers from JLL and BNP Paribas advised on the deal.