RESEARCH

2012

BELGIUM Industrial market report

HIGHLIGHTS• Despite strong investor demand for high quality logistics and industrial property, yields

have remained stable as a result of a poor investment turnover. We believe that this trend will continue during 2012.

• Some recent occupational transactions in the logistics market towards the end of 2011 showastrengtheningclimate.However,webelievethat2012willremainadifficultyearforlogistics take-up.

• Investment transactions in both industrial and logistics markets are characterized by a longerdecisionmakingprocessandgrowingdifficultiesforpurchasers,mainlyend-users,infinancingtheirinvestments.

• Semi-industrial take-up is decreasing across all regions.

• There is still a limited development pipeline and consequently a severe lack of immediately available property. The logistics market continues to be characterized by built-to-suit projects. As land prices rise and rental values remain unchanged, developers are reluctant to start construction without having secured an occupier.

BRUGGE

OUDENAARDE

OOSTENDE

KORTRIJK

TOURNAI NIVELLES

CHARLEROI

PHILIPPEVILLEFrance

Luxembourg

Germany

Netherlands

DINANT

NAMUR

AALST

GENT

ANTWERPEN

MECHELEN

VILVOORDE

BRUXELLES

NEUFCHATEAU

SPA

VERVIERS

VIRTON

ARLON

ATH

VEURNE

TURNHOUT

HASSELT

LEUVEN

MAASEIK

BASTOGNE

WAVRE

TONGEREN

ST-NIKLAAS

KNOKKE

MONS

LIÈGE

2012BELGIUM Industrial market report

Investment Data

Main industrial locations

limited industrial investment activity in 2011

2

Prime investment yields (%)

LocationBrussels

Flemish Brabant

Walloon Brabant

Antwerp

East-West Flanders

Limburg

Liège

Hainaut

Namur / Luxemburg

Source : Knight Frank

Industrial7.75

7.60

7.60

7.75

8.25

8.25

8.25

8.20

8.20

Logistics7.00

7.00

7.30

7.25

7.50

7.70

7.60

7.80

7.80

Major investment transactions

Purchaser

Private

Private

Integrale

Intervest

Intervest

Intervest

Intervest

WDP

WDP

Source : Knight Frank

Property

Woluwe Industry Park - Sint-Stevens-Woluwe

E40 Trade Center - Sint-Stevens-Woluwe

Budasteenweg - Machelen

‘De Gyzeleer’ - Huizingen

DHL Pharma Logistics - Huizingen

Oevel - UTI Belgium

Caterpillar Logistics - Houthalen

Betafence Zwevegem

Genk Distribution Platform

sq m

9,000

7,500

5,000

17,000

15,900

27,500

26,250

120,000

18,000

Vendor

Segro

Segro

Pylos

Sale-and-leaseback with DHL Pharma logistics

Sale-and-leaseback

West-Logistics

Groep Maes

Betafence

Hermespark Genk

Main industrial locations Logistics market Ports

3

TAKE-UP oN logistics and industrial markets in 2011 reached800,000 SQ M

Occupational data

Semi-industrial Logistics Land valueAverage rent

(€/sq m/year)Prime rent

Average rent

Prime rent

€ / sq m

Brussels

Flemish Brabant

Walloon Brabant

Antwerp

East-West Flanders

Limburg

Liège

Hainaut

Namur / Luxemburg

48

48

48

39

36

35

35

33

33

55

55

52

46

42

40

40

42

40

40

40

38

40

38

38

30

35

30

45

45

42

43

43

41

39

38

38

140-220

125-185

70-120

120-190

70-160

40-85

25-45

25-45

20-40

Belgian semi-industrial and logistics real estate market

Logistics space> 5,000 sq m

Built after 1980

Clear height > 8m

Loading docks > 1/1,000 sq m

Offices<10%oftotalfloorspace

Semi-industrial> 400 sq m

Built after 1965

Clear height > 4.5 m

Loading docks are optional

Offices<50%oftotalfloorspace

Belgium infrastructure• Dense motorway network

• 45,000,000 consumers within 3 hour drive

• 60%ofEUpurchasingpower within 500 km range

• Well developed port accomodation

• Increasing railway and inland water transportation

• Government stimulus package focused on logistics activities

Source : Knight Frank

Belgium key economic data 2011

Population

Land Mass

GDP

Unemployment

Source : Knight Frank

11,071,000

30,528 sq km

€ 365,474 m

8.4%

Source : Knight Frank

Development pipeline

Property

Brussels (Neder-Over-Heembeek)

Bornem Maritime Logistics

Logistic Cluster Willebroek

Ghent Kanaalzone

Neufchâteau Ardennes Logistics

Magna Park La Louvière

Trilogiport Liège

Maximum floor area (sq m)

64,000

103,000

30,000

1,600,000

60,000

150,000

200,000

Developer

Katoennatie

Depaepe Group

Depaepe Group

G2I

Group 3

Gazeley

WDP

Major occupational transactions

LettingsTenantCaterpillar Logistics

Damco

Nike

Stanley Black & Decker

Boyriven

Vincent Logistics

SalesOccupierDuvel Moortgat

Colim (Colruyt)

PropertyCanal Logistics

The Bridge Logistics

Herentals Logistics

Sint-Truiden

Nivelles

Milmort

Property Puurs

Mechelen

sq m20,000

16,700

48,800

61,000

10,000

11,000

sq m25,500

49,000

OwnerLeasinvest

De Paepe

Intervest

Goodman

WDP

Private

VendorGoodman

FM Logistics

RESEARCH

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Belgium Investment Department

Filip Derijck sprl

Managing Director+32 (0) 2 548 05 48filip.derijck@be.knightfrank.com

Alexis Duvieusart sprl

Head of Investment Department+32 (0) 2 548 05 48alexis.duvieusart@be.knightfrank.com

Belgium Industrial Department

Didier DelobelHead of Industrial Department+32 (0) 2 548 05 60didier.delobel@be.knightfrank.com

David BatensIndustrial Department+32 (0) 2 548 05 61david.batens@be.knightfrank.com

Xavier ConstantIndustrial Department+32 (0) 2 548 05 62xavier.constant@be.knightfrank.com

Belgium Valuation Department

Tom MaesHead of Valuations+32 (0) 2 548 05 66tom.maes@be.knightfrank.com

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© Knight Frank LLP 2012

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