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EUR65.5M asset sale in Poland ahead of book value

To see our latest announcement please follow the link below

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Key facts

 

Location: Lodz, Poland
Investment pillar: Value Add Asset
Acquisition price: €51.8 million
Net initial yield: 6.1%
GIA: 77,660 sqm
Lease expiry: 5.0 years to expiry (4.5 years to break)
Acquisition date: February 2020

Further information

 

  • The two modern prime logistics properties, completed in 2018, and development land, positioned in a core logistics location, with the potential to invest a further €15.0 million developing the adjacent phase II land.
  • This asset offers scope for income growth off a low base and value enhancement through identified asset management opportunities, as well as the potential to add value through the development of the land

Phase I

  • Building 1: 43,218 sqm is let to Arvato Polska sp z.o.o (“Arvato”) until January 2025 with tenant break option in January 2024. Arvato is an international logistics service company, part of Bertelsmann Group, the global media, services and education group which generated revenues of €17.7 billion in its 2018 financial year. Arvato provides international, third party logistics services for retailer H&M from this building.
  • Building 2: 8,942 sqm is let until July 2029 to Stalatube sp z.o.o, a leading provider of stainless-steel solutions. A further 3,287 sqm is let to the Polish operations of German packaging company, Tillmann Wellpappe, until July 2029 with a parent company guarantee.
  • The currently 22,213 sqm vacant unit, benefits from a two-year vendor’s rental guarantee.
  • This reflects a weighted average unexpired lease term of 5.0 years to expiry (4.5 years to break). All rents are subject to annual upwards only indexation to 100% of local CPI.

Phase II

  • Phase II of the asset is an adjacent plot of land of approximately 45,000 sqm suitable for constructing a building with a GIA of approximately 22,400 sqm. The company has entered into a funding agreement with the vendor to bring forward development of this phase on letting, increasing the Company’s investment in the asset by approximately €15 million.
  • Marketing of the Phase I vacancy and Phase II development is being carried out by the vendor, European Logistics Investment B.V. (“ELI”), and their joint venture development partner, Panattoni, who have wide reach in the Polish market.

For related information see Our Properties and Portfolio Summary