Financial details were not disclosed.

The deal has been struck with Stellar Development Ara Almelo, a collaboration between Heembouw and Stellar Development. Heembouw will start the construction works of the 47,000 m2 Ara Almelo logistics and distribution centre in September 2022.

'Almelo is a strategic logistic destination near the Dutch and German border; there has been a high level of leasing activity over the past two years due to high demand and limited supply of land in the traditional core logistics markets,' said Stephan Riechers, head of logistics investment at Union Investment.

The facility should be completed by the end of September 2023. Stellar Development Ara Almelo is also responsible for the letting of the development which consists of four units, and can be used as both a single-tenant and multi-tenant property.

The acquisition has been made on behalf of Union Investment’s open-ended property fund UniImmo: Europa.

The development is located within sight of the A35 motorway and direct alongside the entrance to the XL Business Park Twente. All units will have optimal truck loading access and market standard specifications.

The scheme will also be surrounded by a unique 'nature screen', about 15 metres high and almost a kilometre in length, providing a strong relationship between the building and nature, as well as creating an attractive working environment.

Both the building design and the choice of materials and techniques will permit the building to generate the smallest possible CO2 footprint.

The development will be certified to BREEAM Very Good and will also be one of first logistic hubs in the Netherlands to meet the EU taxonomy regulations.

Union Investment's European logistics portfolio is currently worth around €3.5 bn and comprises 64 properties in Germany, France, Poland, Austria, the Netherlands, Ireland and Switzerland.

Union Investment was advised by 3Stone Real Estate (Commercial), Dentons (Legal) and Dress & Sommer (Technical & Environmental) and Orterea (Taxonomy).