LaSalle Investment Management has managed the acquisition of a portfolio of two inner-city logistics parks in Warsaw on behalf of LaSalle E-REGI. The portfolio was developed by Panattoni Europe, the largest logistics developer in Europe. The City Logistics Warsaw Airport and City Logistics Warsaw City North logistics parks are both located within the inner-city area of Warsaw. The city is one of Europe’s most popular logistics markets: despite increasing levels of supply, Warsaw’s logistics vacancy rate has trended downwards from above 20% in 2010 to a current level of 6.5%, due to strong demand. These market conditions are in part driven by the city’s location, which benefits from being situated near to the A2 motorway. The strategic transport route links Warsaw and Lodz, the most significant logistics markets in Poland, and connects the country directly to Western Europe through Berlin.
In total, the portfolio offers close to 25,000m² of rental space, comprising modern class-A logistics space, flexible layouts that are adaptable to the needs of small and medium-sized occupiers, and top-of-the-range technical specifications. The parks are both fully let with a well-balanced mix of tenants, including an international customs services and customs compliance firm, a logistics operator that works with some of Europe’s largest fashion brands, and the largest supplier of woodworking machinery in Poland.
Uwe Rempis, Managing Director and Fund Manager of LaSalle E-REGI, said: “Logistics has long been a target sector for the LaSalle E-REGI and recent events have only served to strengthen our view of the asset class. Given the rapid expansion of e-commerce – as well as Poland’s developing national road infrastructure, access to low-cost labour and relatively low rents compared to Western Europe – we expect that the portfolio will experience favourable demand fundaments over the coming years, providing long-term secured income for the Fund.”
