Investment management company EIKA Asset Management (EAM) has signed an agreement with Europe’s largest logistics real estate developer Panattoni. Under the agreement, Panattoni will be responsible for the development and construction of a logistics building in Poland, while EAM will coordinate the financing of the project. Half of the property under development will be leased by Pilkington Automotive Poland, one of Europe’s largest glass manufacturers.
The building is planned to be built in the town of Sochaczew, located approximately 50 kilometers west of Warsaw. The property will occupy 28 thousand square meters, of which, upon completion, 50 percent will be leased by Pilkington Automotive Poland, a UK company whose activities include glass production, processing, automotive glass, solar module glass, etc.
The value of the development agreement is EUR 18 million, of which approximately EUR 7.0 million will be an investment by the EAM-managed fund EIKA Real Estate Fund (EREF).
The Polish market is currently very attractive for investors. It is estimated that the Polish logistics market is the fifth largest in Europe. Experts note that it is currently experiencing a golden age – all indicators point to the stability and resilience of the Polish logistics market, demand is stabilizing, and the so-called “Big Box” type industrial buildings remain popular among institutional investors.
Viktorija Orkinė, CEO of EIKA Asset Management, says that the partnership with Panattoni will provide an opportunity to expand EREF’s logistics portfolio in Poland, thus making the fund’s asset diversification even more attractive to investors.
“We are always looking for attractive cooperation opportunities that would allow us to implement even more ambitious projects. In this case, developing a project with such an experienced partner as Panattoni will allow both parties to utilize their competencies: Panattoni – logistics development, EAM – asset and capital management. In this way, we can be sure that we are investing safely and can bring even greater returns to our fund participants,” comments V. Orkinė.