Invesco Real Estate has committed to developing a circa 37,900 sqm Grade A last-mile logistics facility strategically located adjacent to the Prague ring road deal on behalf of a US separate account client.
Constructed by Logport Development, the facility will consist of 11 separate units to be completed by Q1 2024. Seven units – called LogSpace – will be traditional logistics buildings built in three distinct sizing categories for larger tenants; the remaining four – called LogBox – will be a highly flexible blend of smaller warehousing, office and showroom assets.
Due to its excellent location and flexible market approach, more than half of the space as of today is already pre-let to a range of prime tenants. The site will be rated BREEAM In-use Excellent post completion and BREEAM New construction Very Good. Among other sustainability attributes, it will make extensive use of solar panels, ‘grey water’ and rainwater retention and green facades.
Located adjacent to the main Prague ring road, the logistics park will serve both as a last-mile distribution channel, with circa 1.3 million inhabitants within a 30-minute drive, as well as a major domestic distribution centre through the main Czech national road and rail routes.
Henry Grant, Director of Fund Management at Invesco Real Estate, said: “The continued pressure on global supply chains, further forecast e-commerce penetration and the supply-demand imbalance for new build last mile logistics space, serving Prague, makes for a highly compelling investment case to drive long-term outperformance. Partnering with logistics specialist Logport will ensure we deliver a best-in-class, sustainable led last mile logistics park. We are delighted to have secured this logistics development for one of our long-standing US clients, who plan to further grow their European real estate exposure.”
“Such opportunities are a rare commodity in the Czech Republic and even more so in Prague, due to a stringent planning system. However, with high demand from tenants, we expect the last-mile sector to grow significantly. Prague is a major driver of the Czech economy, and its inhabitants represent the wealthiest segment, ranking third by GDP per capita in terms of purchasing power in the EU,” concludes Tomas Picha, Senior Director – Transactions, CEE at Invesco Real Estate.
“We are proud to announce the conclusion of the transaction with Invesco Real Estate, the leading international asset manager. We view their interest in the Logport Prague West project as confirmation of continued investment appetite for top-notch commercial projects. The prevailing strong demand from tenants confirms both the wisely developed concept, as well as favourable timing of this project. We are confident that successful completion of Logport Prague West shall create a strong basis for future potential co-operation with Invesco Real Estate,” added David Vais, CEO of Logport Development.