A joint venture between Partners Group and Peakside Capital Advisors has signed a portfolio loan facility agreement with Bank Pekao S.A., comprising an investment loan and VAT loan (more than PLN 500 million in total). The funds have been used to finance the acquisition of three logistics properties in and around Warsaw and the redevelopment of the City Point Targówek park.
A joint venture between Partners Group, a leading global private markets firm, acting on behalf of its clients, and investment manager Peakside Capital Advisors has entered into a portfolio loan facility agreement with Bank Pekao S.A.
A facility of up to PLN 500m in total was provided under the agreement. The commitment from one of the leading financial institutions in Poland attests to the quality of the portfolio and the redevelopment project.
The proceeds have been used to finance the acquisition of three properties: City Point Targówek, Logistics Point Raszyn and Logistics Point Piaseczno. The funds will also be used for the redevelopment of City Point Targówek and the financing of the project post-completion. When selecting investments, Peakside focuses on a value-add strategy, allowing it to maximise the value of the properties it owns through leasing, redevelopment, expansion or ESG upgrades.
“The loan agreement with Bank Pekao is an important transaction of warehouse financing for us, marking the beginning of fruitful cooperation. An agreement signed with a leading banking institution provides us with access to a secured source of financing, enabling us to fund this acquisition and our ambitious investment plans covering this logistics portfolio. The flexible financing structure has been aligned to the pace of our project,” noted Konrad Pazorek, Head of Finance Structuring at Peakside Capital Advisors.
“At Bank Pekao we aim to provide our clients with strong financial support in implementing warehouse and other commercial property development projects in Poland. We have a positive view of the industry as offering strong growth potential. We are glad to be part of such ambitious projects developed in and around Warsaw. Peakside’s project involves the revitalisation of old warehouse buildings into modern facilities, with major improvements to their energy efficiency and environmental performance, which fits perfectly with the bank’s strategy,” added Piotr Kwadrans, Director at Bank Pekao.
The modern City Point Targówek logistics park will be redeveloped after the demolition of existing buildings. The first phase of the demolition in the Targówek district is already underway, with tenants to move into the new buildings in 2023. The modernisation of the space in Piaseczno and Raszyn is scheduled for a later date. At these two sites, the project owner plans to renovate and refresh the existing facilities, while maintaining the full functionality of the warehouses. Once redeveloped and upgraded, the three logistics facilities will deliver close to 150,000 sqm of warehouse and office space. The Peakside Capital Advisors team will be responsible for the development, asset management and commercialisation of the facilities located in Warsaw’s Targówek, Raszyn and Piaseczno on behalf of the joint venture.
In the process, Partners Group and Peakside Capital Advisors were advised by law firm Greenberg Traurig, and Pekao Bank was represented by law firm Clifford Chance.