Location: Lodz, Poland Acquisition price: €55 million Net initial yield: 5.8% on the corporate acquisition GIA: 49,379 sqm Eaves height: 10 metres Lease expiry: nine years Acquisition date: December 2018
A a prime, modern national logistics facility at Strykow, Lodz, in central Poland, let to Castorama Polska Sp.Zo.o., trading as Castorama (“Castorama”), one of Europe’s leading DIY retailers and part of Kingfisher plc.
Phase I of this high specification facility, constructed in 2017 with Castorama in occupation, has a gross internal area of 49,379 sqm. Phase II is being acquired on a forward funded basis and the property is let to Castorama under the existing lease. Practical completion of the development is targeted for May 2019.
The site is strategically located in Strykow, 15km north east of Lodz, Poland’s third largest city, which benefits from excellent infrastructure and connectivity to the country’s road, motorway and rail networks. Central Poland is an established logistics location that has seen rapid take up by numerous blue-chip tenants in the last five years, with continuing high tenant demand and a low vacancy rate.
Upon practical completion, this combined facility will have a total gross internal area of 101,555 sqm and will be entirely let to Castorama, with an unexpired lease term of nine years. The lease is subject to annual upward only indexation.