Cabot Properties Forward Purchases 16,400-Square-Meter Logistics Property in Hanover Region From BGAR
Cabot Properties has agreed to forward purchase a 16,400-square-meter logistics facility under construction in the Gross Munzel industrial estate west of Hanover from Hanover-based family office and project developer BGAR, the firms announced Sept. 22, 2026. The off-market transaction gives Cabot a fully leased, newly built asset in the Wunstorf/Barsinghausen area of Lower Saxony ahead of its scheduled fourth-quarter 2026 completion.
Deal Structure and Property Specifications
The transaction is structured as a forward purchase, with Cabot Properties acquiring the approximately 176,500-square-foot building during the construction phase through a process that drew limited bidder competition. The property was fully leased before construction concluded.
Upon completion, the building will feature a clear height of approximately 12.20 meters, 14 dock levellers, two ground-level doors and an ESFR sprinkler system. The facility is also designed to meet Water Hazard Class III, or WGK III, requirements, broadening its potential occupier base to include chemical and hazardous-goods users. A rooftop photovoltaic system will be installed, and the property is expected to achieve DGNB Gold certification. The single building can be divided into two separate units, providing flexibility to accommodate multiple occupiers.
"This is a rare opportunity to acquire a modern, highly functional logistics property during construction through an off-market process with limited bidder competition. This enables us to expand into a strategically important target region on attractive terms," said Konstantin Braun, Vice President, Investments at Cabot Properties. "The property is located within an established logistics cluster that continues to attract strong interest from occupiers and developers. It also benefits from excellent access to one of Lower Saxony's most important logistics corridors and an existing lease with a high-quality occupier. The continued strong demand for modern logistics properties in Northern Germany is consistent with our strategy of investing in properties that are mission-critical to occupiers and located in key regions characterized by economic growth and positive consumption trends."
BGAR Managing Director Bernd Rathenow said the developer appreciated the confidence Cabot placed in the firm and the straightforward execution of the acquisition process. "We would also be pleased to discuss the acquisition of future projects with Cabot," Rathenow said.
S-ImmobilienVermittlung Hannover GmbH brokered the transaction. "BGAR's professional management of the process contributed to Cabot's decision to invest once again in a high-quality new-build development and to acquire the property during the construction phase," said Felicitas Roda, Real Estate Agent at S-ImmobilienVermittlung Hannover GmbH.
Location and Logistics Infrastructure
The Gross Munzel industrial estate sits approximately two minutes by car from the A2 motorway, one of Germany's principal east-west freight corridors. The A2 provides direct connections to the Netherlands, the Ruhr region and Hanover, with onward access via Berlin to Poland, positioning the asset for both regional distribution and cross-border logistics flows.
Hanover serves as the capital of Lower Saxony, Germany's second-largest federal state by area and fourth-largest by population. The regional economy is anchored by automotive, mechanical engineering, food and chemicals sectors. Major companies and logistics occupiers active in the region include Amazon, Airbus, BMW, Continental, DSV, DHL, FedEx, Nagel Group, UPS, Volkswagen and Rhenus.
German Logistics Market Context
The acquisition comes as Germany's logistics occupational market has shown broad improvement in 2026. Take-up across Germany's logistics and warehouse sector reached more than 3 million square meters in the first half of 2026, representing year-over-year gains ranging from approximately 11% to 28% depending on the reporting methodology — a consistent directional improvement following a weaker period for occupier decision-making.
At the same time, speculative construction has become more disciplined. German Big Box vacancy declined to approximately 4.7% from year-end 2025 levels, partly reflecting a reduction in speculative deliveries. Prime rents across Germany's leading logistics hubs averaged approximately €8.50 to €9.00 per square meter per month in the first half of 2026, up roughly 4% to 5% year over year, with average rents across broader markets also trending higher.
That combination — rising occupier demand and a tighter supply pipeline — underpins the appeal of a forward purchase structure. By acquiring a fully leased building before completion, Cabot Properties obtains exposure to a new facility with leasing risk substantially reduced, while BGAR secures an institutional exit ahead of delivery.
About the Companies
Cabot Properties is an international private equity real estate firm focused on the logistics sector. Founded in 1986, the firm has invested more than $19 billion in logistics real estate, served more than 4,400 tenants and operated more than 1,775 buildings totaling more than 245 million square feet. Cabot is headquartered in Boston with offices across North America, Europe and Asia-Pacific.
BGAR is a Hanover-based German family office and project developer active in logistics real estate development in the region.