Australia's Cromwell Property Group is joining forces with French group Bouygues Construction's Linkcity arm to build up a €500 mln portfolio of logistics and light industrial assets in Central and Eastern Europe.
The two partners have already identified a quarter of the investment opportunities. The first asset is an 8,000 m2 logistics building located east of Prague, in the Czech Republic. The asset is 88% pre-let and due to complete in Q3 2018.
The larger second and third assets, covering a combined 180,000 m2, are currently also seeking pre-let commitments.
Under the agreement, Bouygues' affiliate companies, Linkcity and VCES, will be responsible for the project development, design and construction of the portfolio, while Cromwell will source investment funding and subsequently provide asset management services upon the completion of each project.
Cromwell’s managing director for Europe, Mark McLaughlin, said: 'We are delighted to partner with an experienced developer of the calibre of Bouygues to create a portfolio of premium logistics and light industrial assets that are already in demand from transport and ecommerce related occupiers.'
'We have identified a significant investment opportunity in Central and Eastern Europe, where we believe there will be a range of future economic, infrastructure and other growth opportunities,' added Simon Garing, Cromwell Chief Capital Officer. 'This partnership is another step forward for our funds management business.'
David Labardin, CEO of Linkcity Czech Republic, commented: 'This is a great opportunity to combine our development expertise in international, Czech, and Slovak markets with a strong investor partner who has an excellent track record of managing assets across Europe. Link Hradec Kralove is just the beginning with further projects located in close proximity to the main cities in the Czech Republic, Slovakia and Poland.'