The acquisition of a Central Distribution Centre leased to Leroy Merlin in Piątek

In April 2020 Savills Investment Management has completed the acquisition of a Central Distribution Centre leased to Leroy Merlin in Piątek from Invesco Real Estate. The asset of ca.123,000 sq m is located ca.40km north of Lodz, which constitutes Poland’s prime central logistics location. Leroy Merlin have consolidated their Polish logistics operations into the unit and have committed to occupy the building for 10 years. Leroy Merlin Distribution Centre in Piątek is the largest single storey build-to-suit logistics facility developed in Poland to date, according to Panattoni (data as October 2019).
Name of the deal The acquisition of a Central Distribution Centre leased to Leroy Merlin in Piątek
Information about the transaction project/projects/portfolio In April 2020 Savills Investment Management has completed the acquisition of a Central Distribution Centre leased to Leroy Merlin in Piątek from Invesco Real Estate. The asset of ca.123,000 sq m is located ca.40km north of Lodz, which constitutes Poland’s prime central logistics location. Leroy Merlin have consolidated their Polish logistics operations into the unit and have committed to occupy the building for 10 years. Leroy Merlin Distribution Centre in Piątek is the largest single storey build-to-suit logistics facility developed in Poland to date, according to Panattoni (data as October 2019).
The date of closing the deal April 2020
Value of the transaction (in EUR) EUR 71 MILLION
Yield -
Seller, plus brief information about the company Invesco Real Estate, the global real estate investment manager with US$84.7bn in real estate assets under management, 550 employees and 21 regional offices across the U.S., Europe and Asia. The firm was established in 1983 and has been actively investing in core, value-add and opportunistic real estate strategies since 1992 (data as of 31st December 2019).
Consultancy which advised Seller Greenberg Traurig
Purchaser, plus brief information about the company Savills Investment Management on behalf of Korean institutional investors managed by Vestas Investment Management. Savills IM is an international real estate investment manager, which administers assets of a total value of c. EUR 20.5 bn worldwide (as of Q1 2020). The company offers a wide variety of asset and fund management services in the form of individual mandates and funds for a variety of investors, including insurance companies, pension funds, charities and family offices. The scope of investment styles reaches from core to opportunistic.
In Poland, Savills IM currently manages assets in three commercial real estate sectors: office (buildings offering more than 115,000 sqm.), logistics (assets offering more than 1 mln sqm.) and retail (51,000 sqm.). Their total value is around EUR 1.5 bn. Savills IM is one of the most active players on the Polish real estate market, having created a portfolio over a dozen projects in merely 3 years of its investment activity in Poland.
Consultancy which advised Purchaser Savills and Dentons
Financing institution -
Current occupancy level 100% (Leroy Merlin have committed to occupy the building for 10 years)
Please say why this deal should be considered for the award Leroy Merlin Distribution Centre in Piątek is the largest single storey build-to-suit logistics facility developed in Poland to date, according to Panattoni (data as October 2019). This significant transaction may be considered as a symbol of the booming industrial market in Poland and shows rising demand for this type of assets from international investors, despite Covid-19 challenges. According to Savills, for the first time last year, volumes of investment into the global logistics sector in Europe overtook transactional activity into the retail sector, and industrial yields are now on a par with the retail and office sectors.
Name of the deal
The acquisition of a Central Distribution Centre leased to Leroy Merlin in Piątek
Information about the transaction project/projects/portfolio
In April 2020 Savills Investment Management has completed the acquisition of a Central Distribution Centre leased to Leroy Merlin in Piątek from Invesco Real Estate. The asset of ca.123,000 sq m is located ca.40km north of Lodz, which constitutes Poland’s prime central logistics location. Leroy Merlin have consolidated their Polish logistics operations into the unit and have committed to occupy the building for 10 years. Leroy Merlin Distribution Centre in Piątek is the largest single storey build-to-suit logistics facility developed in Poland to date, according to Panattoni (data as October 2019).
The date of closing the deal
April 2020
Value of the transaction (in EUR)
EUR 71 MILLION
Yield
-
Seller, plus brief information about the company
Invesco Real Estate, the global real estate investment manager with US$84.7bn in real estate assets under management, 550 employees and 21 regional offices across the U.S., Europe and Asia. The firm was established in 1983 and has been actively investing in core, value-add and opportunistic real estate strategies since 1992 (data as of 31st December 2019).
Consultancy which advised Seller
Greenberg Traurig
Purchaser, plus brief information about the company
Savills Investment Management on behalf of Korean institutional investors managed by Vestas Investment Management. Savills IM is an international real estate investment manager, which administers assets of a total value of c. EUR 20.5 bn worldwide (as of Q1 2020). The company offers a wide variety of asset and fund management services in the form of individual mandates and funds for a variety of investors, including insurance companies, pension funds, charities and family offices. The scope of investment styles reaches from core to opportunistic.
In Poland, Savills IM currently manages assets in three commercial real estate sectors: office (buildings offering more than 115,000 sqm.), logistics (assets offering more than 1 mln sqm.) and retail (51,000 sqm.). Their total value is around EUR 1.5 bn. Savills IM is one of the most active players on the Polish real estate market, having created a portfolio over a dozen projects in merely 3 years of its investment activity in Poland.
Consultancy which advised Purchaser
Savills and Dentons
Financing institution
-
Current occupancy level
100% (Leroy Merlin have committed to occupy the building for 10 years)
Please say why this deal should be considered for the award
Leroy Merlin Distribution Centre in Piątek is the largest single storey build-to-suit logistics facility developed in Poland to date, according to Panattoni (data as October 2019). This significant transaction may be considered as a symbol of the booming industrial market in Poland and shows rising demand for this type of assets from international investors, despite Covid-19 challenges. According to Savills, for the first time last year, volumes of investment into the global logistics sector in Europe overtook transactional activity into the retail sector, and industrial yields are now on a par with the retail and office sectors.