The Czech Republic's strong economic growth prospects and pricing compared to much of Western Europe have encouraged Standard Life Investments to make its first commercial property purchase in Central Europe.
The investment house has been a key player in Western European commercial property development for over a decade, primarily in the French and Spanish markets, but has also been closely following the Central European market for a number of years.
On behalf of its European Property Growth Fund, (EPGF) Standard Life Investments has now made its first entrance in the Czech Republic, purchasing the Tulipan Park Logistics Centre close to Prague Airport from Redevco for €22.1 mln. Four tenants, who include shipping firm, Maersk, occupy the two modern warehouse buildings that total 22,050 m². and were developed in 2004.
Martin McGuire, European Investment Director at Standard Life Investments, commented: This is a very exciting step for us and I believe that the purchase of the Tulipan Park Logistics Centre - which is in an excellent strategic location - marks the start of further investment by us in this region and also in other new markets. Our short term focus is on securing other opportunities in the industrial and retail sectors.
Jờrg Bitzer, Managing Director of REDEVCO Central Europe, says Redevco is delighted with the result of the transaction. There was considerable interest in the Tulipan Park Logistics Centre from many international investors, however Standard Life Investments offer was chosen given their ability to act decisively and close the deal quickly.
Knight Frank represented Standard Life Investments and King Sturge acted for Redevco. Legal advice was provided by ENWC for REDEVCO and CMS Cameron McKenna for Standard Life Investments.
Source: Standard Life Investments