LeadCrest Capital Partners (“LeadCrest”), the first European fund 100 percent dedicated to sale-leaseback and build-to-suit investments, announced entering an exclusive long-term partnership with KGL S.A. (KGL) via the acquisition of a 9,500 sqm light industrial and logistics facility in the greater Warsaw area.
Founded in 1992, KGL is a Polish speciality chemical company, and market leader in food packaging for the meat, fresh fruit and vegetable, biscuits, and takeaways product segments. In addition, the company also distributes granules and produces tools. Headquartered in Warsaw, the company employs 850 staff in several industrial facilities across the country. KGL is listed on the Warsaw stock exchange since November 2015.
Situated in Czosnów, Greater Warsaw, the asset enjoys a prime location alongside the S7 expressway which is currently being refurbished and extended. The area has attracted significant investments from leading developers as a result of corporates’ growing interest in micro-location. The 9,500 sqm mission-critical facility was extended and modernised in 2019 and comprises production and warehouse space as well ancillary office accommodation. The site also includes 20,000 sqm of undeveloped land, allowing for future extension of the facility.
The asset is let on a 20-year triple net lease to KGL S.A. ESG commitments, the parties have agreed to a modernisation plan which will improve the energy performance of the facility.
Krzysztof Gromkowski, President of the Board, KGL, commented: “We are very excited about this new long-term partnership with LeadCrest. Whilst the proceeds of this transaction will be used to repay long-term debt thus decreasing our overall cost of financing and will support the further development of KGL. We also very much look forward to the next steps of this cooperation, which will allow us to fund our operations and growth plans. Furthermore, in a rapidly rising interest rate environment where many investors are sitting on the sideline, it was comforting to work with an experienced investor, who committed to investing further in Poland, and who knew and understood our food industry, thus providing us with the certainty of execution.”
Georges Asmar, Portfolio Manager at LeadCrest Capital Partners, added: “This new alliance with KGL is another example of our company’s strategy to invest in resilient sectors and partner with robust businesses by offering them a tailored long-term financing solution to fund their growth and energy transition objectives. We are delighted to be working with KGL, a true leader in their sector which is a strategic pillar for LeadCrest. This acquisition is a testament to our commitment to Poland, where we have been one of the most active investors over the past 18 months.”
LeadCrest Capital Partners was advised by firms Linklaters and Deloitte on the legal and fiscal matters, Arcadis on the technical aspects, and Knight Frank on the commercial points of this transaction.
KGL was advised by firms Rykowski & Gniewkowski and Plich & Partners on the legal and fiscal aspects of this transaction.
