European Logistic Investment (ELI), a company owned by South-African REIT Redefine Properties and Griffin Real Estate's partners, is joining forces with the European arm of US logistics developer Panattoni to build up a €1 bn logistics portfolio in Poland.
In a press release announcing it has closed the acquisition of a portfolio consisting of nine operating logistics parks in Poland for around €200 mln, ELI said that Griffin Real Estate will co-manage and co-invest in the new venture which is planned to operate over 2 million m2 of logistics space over the next three to five years.
'We are really excited about enlarging our involvement in Poland,' said Andrew Konig, chief executive officer at Redefine Properties. 'The country has a large, stable and growing economy, while its commercial real estate market offers attractive yields. After our successful investment in EPP, being the largest Polish retail platform with a gross asset value over €2 bn, we are excited about seeking to create a national champion in the Polish logistic sector.'
'Griffin has been monitoring the logistics property market for the past few months,' added Maciej Dyjas of GRE, which manages around €5 bn of assets in CEE and counts Oaktree Capital Management and Pacific Investment Management Company among its strategic partners. 'Seeing its potential, we decided to create a new investment platform, inviting Redefine Properties to take part in the venture.'
The acquired logistics properties comprise 300,000 m2 of total gross lettable area in the main Polish logistics centres of Warsaw, Lódz, Cracow, Silesia, Pomerania and Posnania regions. They were bought from funds managed by one of the largest US global asset management companies.
The acquisition will be partially financed by long-term bank debt in the amount of around €100 mln, provided by ING Bank.