Gramercy Europe, acting for its latest fund Gramercy Property III Limited (GPE III), has invested €50m in CEE logistics market. The company has acquired a 55,472m² logistics warehouse in Dunajska Streda, around 40km from Bratislava, from GO ASSET Development and ECE European City Estates. The property is a modern, institutional quality facility, built in two phases in 2016 and 2018. It is let on a long term lease contract to RLS Slovakia, a subsidiary of Germany’s largest discount clothing and textile chain KiK Textilien und Non-Food.
Gramercy has also acquired three adjacent warehouses, totalling 44,444m², in the Pohorelice Logistics Park, in the Czech Republic, from Cromwell Property Group. The property is let to global mail and logistics provider DHL on a new ten year, double net lease. The park is 25 kilometres from Brno, the Czech Republic’s second largest city with over 800,000 inhabitants. Pohorelice is a major logistics hub benefitting from excellent vehicular connectivity via the D1 and D2 motorways, which cross the Czech Republic, Slovakia and Hungary.
Alistair Calvert, CEO of Gramercy Europe, commented: “Whilst still relatively fragmented, the Central European logistics market continues to mature, with more and more global 3PLs and major e-commerce businesses seeking modern, well-located logistics space. Both of these properties, let on long-term leases to strong counterparties, fit with our stated strategy of acquiring tenant critical assets in established logistics hubs with low vacancy rates and where there is the opportunity to realise both income and capital growth. With favourable supply-demand dynamics supporting investment and development in the logistics sector, the Gramercy team continues to leverage its local stakeholder relationships and knowledge of individual submarkets to identify attractive buying opportunities, and with a significant pipeline of both investment and development opportunities identified, is well positioned to deliver market outperformance.”