MPM agrees Euro 113 m sale and leaseback

By Katie Coyne

München, Germany -- Mannesmann Plastics Machinery (MPM) has agreed a Euro 113m sale and leaseback with property firm Segro on three German industrial sites in Munich, Nuremberg and Hanover.

MPM is a leading producer of machines for the plastics and rubber compounding and processing industries and is the parent company of Krauss Maffei, Berstorff and Demag. MPM was split out of Mannesmann following its purchase by Vodafone in 2000.

The leaseback is for a minimum term of 15 years and the Munich site comprises two thirds of the value of the deal. The site consists 130 649 m2 of production or logistics space and 23 488 m2 of offices on 24.1 ha of land.

Segro said the site is well located to the northwest of the city within the motorway ring and within easy access of an important S-Bahn train station link. Part of the site, about 30 000 m2, is sublet to a third party on a lease.

The property firm said it will be able to generate additional returns by building on parts of the site for future occupation by MPM. Segro added that it will potentially be able, with MPM, to secure commercial zoning rights for adjoining land.

The sites at Hanover and Nuremberg respectively comprise 28 772 m2 of built area on 7.3ha of land and 31 669 m2 of built area on 5.1 ha of land.

MPM and Krauss Maffei declined to comment.

From PRW (A Crain publication)