Investment management company EIKA Asset Management has successfully closed the distribution of the Eika Real Estate Fund (EREF). The EUR 7 million raised will be used to develop the EREF fund – logistics warehouses will be developed on the acquired land plot near Warsaw Modlin Airport and the Warsaw-Gdańsk highway.
The distribution of this fund was also participated by “Artea Alternative Investment Fund III”. It provides an opportunity for retail investors to invest and take advantage of the benefits of alternative investments. “We thank “Artea” bank for the excellent start of cooperation and trust in the fund we manage. The involvement of this institutional investor not only significantly contributed to the distribution of the EREF fund, but also confirms the quality of the fund and the attractiveness of our projects in the eyes of institutional capital”, says Andrius Uždavinys, CEO of the investment management company “EIKA Asset Management”.
According to the agreement signed last year by Eika Asset Management (EAM), part of the EIKA group, with the Polish real estate development company Waimea Holding, three phases of development of logistics warehouses near Warsaw Modlin Airport and other important transport arteries in Poland are planned.
The first phase will cover 7.54 hectares of land. Initially, with an investment of 21 million euros, 26 thousand sq. meters of leasable area will be created. It is already known that more than 55% of this area will be occupied by one of the largest DIY chains in Europe, Bricomarché, which belongs to the international group Les Mousquetaires. With more than 40 years of experience and over 500 stores, the chain operates in France, Poland, and Portugal. In the local markets, Bricomarché has established itself as a supplier of building materials, garden goods, and household solutions valued by customers. EAM is currently giving priority to international tenants with high creditworthiness, who continue to show interest in the project under development. During the development of the second phase and with an investment of about 5 million euros, it is planned to develop another 11 thousand sq. meters of area.
“The developed buildings will be used for modern logistics. They will meet the BREEAM high quality standards and other requirements of the international certification system. The designed usable height of the logistics warehouses is 12 meters,” says Andrius Uždavinys, CEO of the investment management company EIKA Asset Management. “We can already offer tenants a competitive rental price for a building that is sustainable and meets modern standards. And we have created an opportunity for investors to participate in the development of real estate, which usually allows for a higher return on investment. Finally, next to the already well-developed road and other transport infrastructure, the developed object will establish this Modlin territory as a new logistics center in the north of Warsaw. By the way, it is about 40 km from the center of Warsaw and will be easily accessible to employees who live in this metropolis.”
He points out that the partner of this first logistics project in Poland developed by EAM, Waimea Holding, is one of the fastest growing industrial and commercial real estate development companies in Central and Eastern Europe. This company specializes in creating modern logistics, warehousing, light industry and air cargo terminal solutions in Poland. Over the 15 years of its operation, Waimea Holding has developed over 300 thousand sq. meters of logistics warehouses and about 2 million sq. meters of land.
It is estimated that the entire project near Warsaw Modlin Airport and other important transport arteries in Poland will cover more than 23 hectares of land, will have approximately 117 thousand sq. meters of leasable area, and the investment amount will exceed 70 million euros.
The head of EAM emphasizes that the Polish warehouse market, which reaches more than 32 million sq. meters, is the fifth largest in Europe and continues to expand rapidly. And in this country, decreasing construction costs allow us to offer competitive rental prices for new logistics facilities without losing the desired return on investment.
“EREF invests in classic commercial properties in Central and Eastern Europe, and the portfolio is widely diversified both across products, such as logistics, light manufacturing, offices, retail properties, and across countries – the Baltics, Poland, Slovakia. The fund’s annual average return after management and performance fees is more than 12%. This is a solid result, especially considering that it is relatively risk-free,” says the CEO of EIKA Asset Management.