SEGRO plc (‘SEGRO’) and Tristan Capital Partners (‘Tristan’) have exchanged contracts on a transaction which will see SEGRO European Logistics Partnership (‘SELP’) acquire a €472 million portfolio of prime logistics assets and development land in Poland, France and Germany.
The acquisition of this portfolio underlines SEGRO’s strategy of building scale and expanding its presence in its target Continental European logistics markets in partnership with third party capital.
The portfolio includes three assets in Poland acquired for €100 million, totalling 171,000 sqm, situated on the outskirts of Warsaw, Lodz and Poznan, all established locations for SEGRO. As part of this transaction, SELP is also acquiring assets in France and Germany from Tristan amounting to €372 million. Completion is expected in the second quarter of 2014, subject to certain closing conditions.
SEGRO holds a 50 percent stake in SELP and acts as asset, property and development manager for the joint venture.
Bożena Krawczyk, Investment Director Central Europe, SEGRO, commented on the transaction: “The off-market acquisition of this significant portfolio, just four months after the creation of SELP, increases the joint venture’s position in some of the best logistics markets in Europe. We remain focused on prime logistics assets with attractive lease terms in well-established locations. We are particularly pleased to have strengthened our presence in Warsaw, Lodz and Poznan, all of which are key markets for us in Poland.”
Tomasz Puch, Head of Office and Industrial Investment, Jones Lang LaSalle, added: “This transaction confirms Poland as one of the markets that continues to attract real estate investment in significant numbers. 2013 proved to be a record breaking year for the Polish industrial investment market with €650 million euros in transactions being completed across the country. We expect that this year’s investment transaction volume will come in at around €500 million with large portfolio transactions once again dominating.”
Jones Lang LaSalle advised SEGRO in this transaction.