EIKA Asset Management (EAM), an investment management company within the EIKA Group, has signed a financing agreement with Bank Pekao S.A., Poland’s second-largest bank. The funds received under the agreement will be used to finance the construction of logistics warehouses in Poland by EAM in collaboration with the Polish development company Waimea Holding.
The agreement signed last year between EAM and Waimea Holding covers three phases of development for logistics warehouses near Warsaw’s Modlin Airport and other major transport hubs in Poland. The first phase covers 7.54 hectares of land and 38,000 sqm of leasable space. The investment in the first phase exceeds €25 million.
“Bank Pekao S.A. has demonstrated its confidence in our project. We obtained a building permit, signed a fixed-price general contract, and concluded lease agreements before purchasing the land and commencing construction. Bank Pekao S.A. will provide approximately €15 million to finance the construction of warehouses north of Warsaw, near Modlin Airport. The financing will be provided in instalments and, upon completion of construction, it will be converted and become cheaper. We look forward to continuing our cooperation with this bank in the future. We are already well known and visible in the Polish market, having successfully implemented several projects worth tens of millions. Our partner in this project, Waimea Holding, is also a factor in the trust of this bank, as it is one of the fastest-growing industrial and commercial real estate development companies in Central and Eastern Europe,” says Paulius Stulgaitis, Head of Investments of the investment management company EIKA Asset Management.
According to the head of EAM, there is a possibility of increasing the financing once the project is complete and all the remaining tenants have been found. “We still have the opportunity to build two additional warehouses nearby,” he said. “This is already the second warehouse development project near Warsaw. We see this as a more liquid and attractive market segment, appealing not only to local Polish market players but also to foreign investors. It is important that we can offer the Polish market a product that meets the high-quality standards of the international BREEAM certification system and the requirements of modern logistics. The success of this project hinges on its highly convenient location in Warsaw, close to Modlin Airport and other major transport routes,” notes P. Stulgaitis.
The entire project, comprising three stages, is estimated to cover more than 23 hectares of land, providing around 117,000 sqm of leasable space, with an investment of over €70 million. The Polish warehouse market, which covers more than 32 million sqm, is the fifth largest in Europe and continues to expand rapidly. Declining construction costs in Poland allow us to offer competitive rental prices for new logistics facilities while maintaining the desired return on investment.
“This is our first transaction with the Lithuanian EIKA Real Estate Fund. We are pleased to be the financial partner for the New Modlin Project. We hope that this transaction will mark the beginning of our good and long-term cooperation. We would like to thank you for your trust and look forward to future cooperation possibilities,” says Dieter Lobnig, Managing Director, Investment Banking and Real Estate Department in Bank Pekao SA.
