Global real estate investment manager, AEW, has acquired a newly developed city logistics asset in Warsaw, Poland. The asset was acquired from Panattoni in an off-market transaction on behalf of a separate account mandate for a German pension fund.
The asset is located in a prime last-mile submarket on the western edge of Warsaw, between the A2 motorway to Poznan and Berlin, and the S8 motorway connecting to Wroclaw and Prague. It has direct access to the city centre which is a 20-minute drive away. The acquisition comprises c.26,000 sqm of grade A, BREEAM-certified space across two buildings, as well as a high number of parking spaces, an outdoor gym, and leisure space for employees. The two buildings are 75 percent let to three tenants with strong covenants, and the second building is due for completion in the first quarter of this year.
E-commerce penetration in Poland is gaining momentum, particularly in the wake of the Covid-19 pandemic. Moreover, Poland remains on track to be one of the best performing economies in the region, in spite of recent GDP contraction and CPI stabilization, as unemployment has been declining and income rising over the last decade. AEW’s CEE portfolio comprises c.€950mn of assets in the office, retail, and logistics sectors, with the region representing a target for growth in the medium term.
“We are very pleased to have secured this state-of-the-art logistics facility which is directly in line with our mandate, given its resilient income characteristics, as well as the positive fundamentals underpinning both the prime logistics sector and Polish economy, which we believe should enjoy a strong post-pandemic recovery. This acquisition complements the mandate’s existing portfolio which now comprises seven assets, and we continue to implement a robust and future-proof investment strategy throughout Europe’s core regions,” Lars-Henning Pylla, Fund Manager at AEW, commented.