Cromwell Property Group has entered into a strategic partnership with Linkcity member of Bouygues Construction, to invest in the rollout of a portfolio of logistics and light industrial assets in Central and Eastern Europe.
The portfolio is targeting an eventual gross asset value of €500m and assets representing more than 25% of the portfolio (by value) have already been identified. The first asset is an 8,000 sq m logistics building. Located just over 100 kilometres east of Prague, in the Czech Republic, it is already 88% pre-let and due to complete in Q3 2018.
The larger second and third assets, covering a combined 180,000 sq m, are currently also seeking pre-let commitments.
Bouygues affiliate companies, Linkcity and VCES will be responsible for the project development, design and construction of the portfolio, while Cromwell will source investment funding and subsequently provide asset management services upon the completion of each project.
Cromwell’s Managing Director for Europe, Mark McLaughlin, said: “We are delighted to partner with an experienced developer of the calibre of Bouygues to create a portfolio of premium logistics and light industrial assets that are already in demand from transport and ecommerce related occupiers.”
Simon Garing, Cromwell Chief Capital Officer, said: “We have identified a significant investment opportunity in Central and Eastern Europe, where we believe there will be a range of future economic, infrastructure and other growth opportunities. This partnership is another step forward for our funds management business. It is also an endorsement of our ability to offer international capital partners with investment opportunities in key sectors across Europe.”
David Labardin, CEO of Linkcity Czech Republic, said: “This is a great opportunity to combine our development expertise in international, Czech, and Slovak markets with a strong investor partner who has an excellent track record of managing assets across Europe. LiNK Hradec Kralove is just the beginning with further projects located in close proximity to the main cities in the Czech Republic, Slovakia and Poland.”
Pascal Minault, CEO of Bouygues Entreprise France Europe, added: “As part of our growth strategy we will explore further opportunities to work with Cromwell throughout our Linkcity network in other European countries.”
RPA Perspective ECE has started the construction of another state-of-the-art logistics centre for the logistics provider Hermes Germany. Mayor Kurt Hambacher, Hermes CEO Thomas Horst, and ECE Managing Director Andreas Mattner recently broke ground for the new logistics centre in Kabelsketal, in the Saale region of Saxony-Anhalt.
Construction in the Kabelsketal town district of Grosskugel has been scheduled to meet the deadline of spring 2019. The project comprises a 10,000 sq m logistics facility and a separate building totaling 2,900 sq m, which includes offices, building services, and social areas. About 200 new jobs will be created at the location. The new logistics centre is the sixth out of nine logistics centres which ECE will construct for Hermes Germany within a short period of time as part of a major national construction project.
In total, ECE and Hermes will invest approximately €600 million for the facilities. ECE's will spend €300 million for buildings and spaces while Hermes will invest €300 million on the technology of the logistics centres. ECE will be responsible for all processes related to the project including the search and purchase of a suitable site, the planning and turnkey handover as well as for selling the property on the investment market. ECE has already sold six of the nine logistics centres – including the facility in Kabelsketal – to Frasers Property Investments Europe.
“We are very pleased to launch the construction of this facility and take another step on the way to completing this major project with Hermes Germany,” said Mattner, Managing Director Office, Traffic, Industries at ECE. “Once again, we will develop a logistics property which meets our client's requirements with regard to profitability, technology, flexibility, and sustainability.”