Prague, Czech Republic: When EQT Real Estate chose to build a Prague logistics park without a tenant in hand, it was a gamble on location and timing. The bet has now paid off. The Czech branch of international logistics company Ecologistics, part of Goodcang Holdings, has leased the entire 44,500 m² larger hall at EQT Park Prague North under a long-term agreement, in what is described as one of the most significant logistics lettings in the Greater Prague region in recent months.
Ecologistics will use the space for local and cross-border e-commerce and fulfilment services for a range of e-commerce clients, with around 100 new jobs expected. The hall's interior is being fitted out to the tenant's requirements, and operations are due to start over the coming months. The park, delivered by 7R Czech for EQT Real Estate on the D8 motorway, was let straight after completion. "We are delighted to announce this fantastic news: the leasing of the entire larger hall at EQT Park Prague North to Ecologistics - the largest available high-quality space in this key area of the Prague metropolitan region. Several factors were decisive for this transaction: first, the park's prime location within the Prague metropolitan area; second, the fact that the park is fully completed, with warehouse space immediately available; and finally, the speed of execution - we were able to conclude this transaction in record time, right after completion, thanks to the professional approach of both our team and the client, as well as the strong support of our partners. This fast first transaction right after the building's completion proves the quality of the location, as well as our decision to build this project fully on a speculative basis." said Marek Muller, senior director, investment and leasing, EQT Real Estate Czech Republic and Slovakia.
The tenant says location, available capacity and quality swung the decision. "The lease of our new facility at EQT Park Prague North represents an important step in the continued development of Ecologistics' operations in the Czech Republic. The new warehouse will strengthen our capacity to support both local and cross-border e-commerce and provide flexible, efficient fulfilment solutions for our clients. The location, available capacity and quality of the facility were important factors in our decision. We look forward to launching operations at the site and further developing our logistics capabilities in the Czech Republic and across Europe." said Xinda Wang, general manager of the Czech operations at Ecologistics. For the developer, the letting validates a project it saw through from the start. "The signing of the park's first major tenant is an important milestone and a strong confirmation of the potential we identified in this location from the outset. Having led the project from acquisition through permitting and construction, we are pleased to see the quality of the development recognised by a major international logistics operator." said Jiri Duchon, managing director of 7R Czech Republic.
The park, built on a brownfield site, has two halls of 44,500 m² and 12,100 m². It offers 12 m clear height, a floor load of 7 tonnes per m² and flexible space that can be adapted to tenants. It is undergoing BREEAM Excellent certification and has a 320 kWp photovoltaic plant, LED lighting, electric vehicle chargers and an energy-monitoring building management system. The site is also prepared for extra solar panels and heat pumps. The smaller 12,100 m² hall remains available to lease.
What the announcement leaves unsaid matters to investors and developers. The rent, lease length and incentives are not disclosed, so it is unclear what "long-term" and "record time" cost the landlord. Ecologistics is a fulfilment provider whose occupancy depends on its own e-commerce client contracts, so the tenant covenant and any break options will weigh on valuation. The jobs figure also stands out. On the release's numbers, about 100 jobs across 44,500 m² works out at roughly one job per 445 m², a calculation of ours. That points to a highly automated or low-density operation, which matters for developers weighing labour availability against power and specification demands.
EQT Park Prague North is EQT Real Estate's third Czech project, after Ostrava Mosnov and Nosovice, where it owns and manages more than 300,000 m² of logistics space. EQT Real Estate has been active in the Czech Republic and Slovakia since 2019, and EQT has €341bn in assets under management. Peter Kolencik of reLokatio represented Ecologistics, while Marek Muller and Stefan Bohos of 7R Czech Republic represented EQT Real Estate.
People mentioned
- Marek Muller, Senior Director, Investment and Leasing, EQT Real Estate Czech Republic and Slovakia
- Xinda Wang, General Manager of the Czech operations, Ecologistics
- Jiri Duchon, Managing Director, 7R Czech Republic
- Peter Kolencik, representative of Ecologistics in the transaction, reLokatio
- Stefan Bohos, representative of EQT Real Estate in the transaction, 7R Czech Republic
Companies mentioned
- EQT Real Estate, part of EQT, owner and landlord of EQT Park Prague North
- Ecologistics, logistics and fulfilment service provider and new tenant, part of Goodcang Holdings
- Goodcang Holdings, parent company of Ecologistics
- 7R Czech, developer that led permitting and construction of the park and supports leasing
- reLokatio, adviser representing Ecologistics in the transaction
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