GREYKITE European Real Estate Fund (Fund) has commenced its deployment programme with the acquisition of a major logistics portfolio in Poland. Comprising three high-quality multi-tenanted properties in Warsaw, Strykow and Gliwice, the portfolio will form the initial investment in a new €300m joint venture (JV) with White Star Real Estate (White Star), a leading Central Europe-focused real estate developer and manager. White Star, the minority JV partner, developed the properties and will continue in its role as asset and property manager.
The portfolio, which is almost fully occupied, totals over 142,000m2 of lettable space. It features a diversified and resilient income profile across more than 40 tenants, with an average unexpired lease term of three years. The properties are located in well-established industrial and logistics sub-markets in Warsaw, Strykow (adjacent to Lodz) and Gliwice (Upper Silesia), in close proximity to some of Poland’s busiest motorways.
The transaction follows on from the formal launch of GREYKITE and the Fund in March this year, when it received capital commitments from the leading global investors Capital Constellation (Constellation), an investment platform managed by Wafra Inc. (Wafra), and Leucadia Asset Management (Leucadia). GREYKITE specialises in real estate investing across a series of asset classes with durable fundamentals in select European markets.
Michael Abel, Founder and CEO of GREYKITE, commented: “Commencing the investment programme with the formation of this JV with White Star and the Fund’s acquisition of a high-quality logistics portfolio is another major milestone for GREYKITE. This transaction is consistent with our strategic focus on scalable investment themes in high-conviction sectors underpinned by compelling fundamentals. The Polish logistics market is benefitting from a number of structural drivers, including the continued trend for nearshoring as a result of its European single market access and relative affordability, and high e-commerce penetration. We look forward to scaling the JV alongside a best-in-class partner, whilst simultaneously closing in on a number of other high-profile acquisitions.”
Dan Valenzano, Senior Partner of GREYKITE, added: “This acquisition represents an attractive entry point into the logistics sector. In addition to the compelling acquisition yield, the portfolio offers numerous leasing, asset management and investment initiatives we will look to implement alongside White Star. Together, GREYKITE and White Star aim to further scale the JV over the next 18-24 months, reflecting our conviction in the logistics market.”
Peter Huntley, CEO of White Star, concluded: “The industrial warehouse and logistics services market in Poland is developing dynamically with supportive fundamentals. We are excited to partner with GREYKITE in addressing this continuing demand growth for warehouse space and to expand our new JV.”
Image provided by FTI Consulting.
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