Investment management company EIKA Asset Management (EAM) successfully continues the development of a logistics center in North Warsaw, close to Warsaw Modlin Airport and major transport hubs in Poland.
EAM is pleased with the progress of the project: in December, the construction of the 1st stage of the Warsaw North Logistic Park (28,454 sq m) was successfully completed and a permit to operate the building was obtained.
This building is already fully leased, with Bricomarché being the first to move in, occupying over 55% of the building’s area. Bricomarché is one of Europe’s largest DIY retailers, part of the international Les Mousquetaires group. With over 40 years of experience and over 500 stores, the company operates in France, Poland and Portugal. It has established itself as a reliable supplier of building materials, garden products and home improvement solutions in its local markets.
The remaining space has already been leased to Deka Trans, a 3PL logistics provider with long-term and reliable customers. Meeting the sustainability requirements of their customers is of utmost importance to this tenant, and they chose the project developed by EAM due to its sustainability, innovation and expansion potential. In line with their needs, the project has been equipped with charging stations for electric trucks.
EAM currently prioritizes tenants with high creditworthiness who continue to have an active interest in the project.
Construction of Phase 1 Phase 2 will begin in the near future, completing the first investment phase. The first phase covers 7.54 hectares of land and will provide 38,000 sq m of leasable area. Investments in this phase amount to more than EUR 25 million.
“The Polish warehouse market, reaching more than 36 million square meters, is the fifth largest in Europe and continues to grow rapidly. Stabilized construction prices in Poland allow us to offer competitive rental prices for new logistics facilities without losing the desired return on investment.”
This is our second warehouse development project near Warsaw. We believe that this is a very attractive market segment, which is of interest to both local Polish market participants and foreign investors. It is important for us that we can offer the Polish market a product that meets the high standards of the international BREEAM certification system and the requirements of modern logistics. The success of this project depends on its particularly convenient location in Warsaw, near Modlin Airport and major transport routes,” said Paulius Stulgaitis, fund manager at EIKA Asset Management.
The logistics warehouse complex project is being developed in three phases. Upon completion, the entire project will offer approximately 117,000 sq m of leased space on an area of more than 23 hectares, and the total investment amount will exceed EUR 70 million.
The strategic location of the project is extremely convenient for logistics. Important road infrastructure is being implemented nearby, including the S7 highway (Gdańsk-Warsaw), and the nearby Modlin Airport provides additional logistics opportunities. EAM predicts that Warsaw North will become one of the fastest growing logistics submarkets in the capital.
About EIKA Real Estate Fund (EREF)
EREF is the largest real estate fund managed by EAM, investing in traditional commercial real estate in Central and Eastern Europe. The fund’s portfolio is highly diversified both by asset class – logistics, light industry, offices, retail properties, and by country – the Baltic States, Poland and Slovakia.
The fund’s average annual return (after management and performance fees) exceeds 12%, which is an impressive result, especially considering the relatively low level of risk.
The fund’s portfolio currently includes not only the logistics center project under development in the north of Warsaw, but also the completed logistics center “Warsaw West X” in the town of Sochaczew, west of Warsaw. The fund also manages the business center “.big” in Krakow, the Celebro business center in Warsaw, a shopping center in Riga, the ViaCon Baltic production base in Kaunas, the Tamro logistics center in the Kaunas FEZ, and in Vilnius: Volkswagen and Audi dealerships, a DHL terminal, and the Highway business center.