Dragon Capital Investments Limited, a member of the Dragon Capital group of companies, has completed the acquisition of stakes in two large logistics centers in the Kiev suburbs.
The company acquired East Gate Logistic, a class A complex located in Boryspil, from Akron Investment Central Eastern Europe II B.V., and 60% of West Gate Logistic, a class A facility located in Stoyanka, from GLD Holding GmbH. The deal values were not disclosed.
Built in 2007, East Gate Logistic has 49,600m² of total space and a leasable area of 49,100m². West Gate Logistic was built in 2008 and has 97,200m² of total and 96,300m² of leasable area. The two sites combined account for more than 10% of class A warehousing space in Ukraine.
“Despite high vacancy rates across the Kiev region’s warehousing market, the level of its saturation with quality class A properties remains low. It is therefore not surprising that both East Gate and West Gate enjoy vacancies of under 8%, while the average rate across the market is 15%. Moreover, there are virtually no logistics depots under construction,” said Volodymyr Tymochko, Managing Director, Head of Private Equity, Dragon Capital. “We explored investment opportunities in the warehousing segment very selectively, ultimately choosing some of the best assets available on the market. Both sites boast a good set of tenants, convenient location, and high construction quality, enabling them to generate stable rental income. We expect to further increase their occupancy in the near future and keep improving their results.”
