Acquisition of 46.5% stake in European Logistics Investment

In January 2020, a 46.5% equity stake in European Logistics Investment platform (“ELI”), a ca. €500 million Polish real estate portfolio was acquired by Madison International Realty from majority owner Redefine Properties. The platform, was set up and co-managed by the co-investor Griffin Real Estate, that has a key role in identifying the right partner for ELI to further capitalize on logistic real estate and attracting the new investor. As part of the transaction, Madison agreed to provide a €150 million commitment to ELI, of which €83.7 million was used to acquire a 46.5% interest in the existing assets and developments in progress while leaving an obligation of €66.3 million to expand the portfolio over the next years. The transaction was Madison’s first major logistics acquisition in Europe as it looks to increase its exposure to the asset class. According to the business plan for expansion of ELI to become the leading Polish logistic platform, the parties, together with the majority owner Redefine Properties Limited, a leading South-African based Real Estate Investment Trust (REIT), aim to further grow the portfolio over the next years.
Name of the deal Acquisition of 46.5% stake in European Logistics Investment
Information about the transaction project/projects/portfolio In January 2020, a 46.5% equity stake in European Logistics Investment platform (“ELI”), a ca. €500 million Polish real estate portfolio was acquired by Madison International Realty from majority owner Redefine Properties. The platform, was set up and co-managed by the co-investor Griffin Real Estate, that has a key role in identifying the right partner for ELI to further capitalize on logistic real estate and attracting the new investor. As part of the transaction, Madison agreed to provide a €150 million commitment to ELI, of which €83.7 million was used to acquire a 46.5% interest in the existing assets and developments in progress while leaving an obligation of €66.3 million to expand the portfolio over the next years. The transaction was Madison’s first major logistics acquisition in Europe as it looks to increase its exposure to the asset class. According to the business plan for expansion of ELI to become the leading Polish logistic platform, the parties, together with the majority owner Redefine Properties Limited, a leading South-African based Real Estate Investment Trust (REIT), aim to further grow the portfolio over the next years.
The date of closing the deal 20 January 2020
Value of the transaction (in EUR) +100 mln
Yield n/a
Seller, plus brief information about the company European Logistics Investment (ELI) is a dynamically developing logistic platform owned by Redefine Properties, Madison International Realty and Griffin Real Estate. Established by Griffin Real Estate and Redefine Properties in 2018 logistic platform ELI is a leading player in the Polish logistics sector with a high-quality, large-scale portfolio that comprises sixteen logistics parks with a total lease area of nearly half a million sqm located in the most important logistics regions in Poland.
European Logistics Investment entered into strategic alliance with Panattoni Europe, the European leader in industrial real estate, thanks to which the ELI platform is experiencing dynamic growth. The company plans further grow of the portfolio over the next years, to become a leading logistics platform in Poland.
Consultancy which advised Seller Rymarz Zdort
Purchaser, plus brief information about the company Madison International Realty is a leading liquidity provider to real estate investors worldwide. Madison provides equity capital for real estate owners and investors seeking to monetize embedded equity, to replace capital partners seeking an exit and to recapitalize balance sheets. The firm provides equity for recapitalizations, partner buyouts and capital infusions; and acquires joint venture. Madison focuses on existing properties and portfolios in the U.S., U.K., and Europe. Madison has offices in New York, London, Luxembourg, Amsterdam and Frankfurt, where the firm operates under the name of Madison International Realty GmbH.
Consultancy which advised Purchaser Greenberg Traurig
Financing institution n/a
Current occupancy level The total leasable area reached nearly half a million sqm and is nearly fully leased, additionally ELI has approximately 130,000 sqm under construction and over 160,000 sqm for future development (purchased plots in Czeladź and Zabrze). Facilities are located in the most attractive logistics locations in Poland. They keep attracting new tenants and also secure renewing leases. Best prove is that the standing and assets under construction are leased in 94%. From beginning of the year till Q3 2020, ELI was able to secure new tenants for nearly 220,000 sqm (among others to high quality tenants like InPost, Jeronimo Martins, Rossmann, Schenker for 7-15 years) and to renew lease agreements in place for over 45,000 sqm with key tenants like Hellmann, Farutex, Pekaes, Hutchinson.
Please say why this deal should be considered for the award The transaction was Madison’s first major logistics acquisition in Europe. Griffin Real Estate has attracted this high net worth investor providing a rare opportunity to enter the European logistics market with a significant investment into an existing large scale, high-quality portfolio Polish market. As part of the business plan for ELI, the parties aim to further grow the portfolio over the next years to create the leading Polish logistic platform. In the next 3-4 years, ELI plans to build further projects of about 2 million sqm. The transaction is also a showcase of how Poland continues to be an attractive market with its positive economic outlook and solid real estate fundamentals.
Name of the deal
Acquisition of 46.5% stake in European Logistics Investment
Information about the transaction project/projects/portfolio
In January 2020, a 46.5% equity stake in European Logistics Investment platform (“ELI”), a ca. €500 million Polish real estate portfolio was acquired by Madison International Realty from majority owner Redefine Properties. The platform, was set up and co-managed by the co-investor Griffin Real Estate, that has a key role in identifying the right partner for ELI to further capitalize on logistic real estate and attracting the new investor. As part of the transaction, Madison agreed to provide a €150 million commitment to ELI, of which €83.7 million was used to acquire a 46.5% interest in the existing assets and developments in progress while leaving an obligation of €66.3 million to expand the portfolio over the next years. The transaction was Madison’s first major logistics acquisition in Europe as it looks to increase its exposure to the asset class. According to the business plan for expansion of ELI to become the leading Polish logistic platform, the parties, together with the majority owner Redefine Properties Limited, a leading South-African based Real Estate Investment Trust (REIT), aim to further grow the portfolio over the next years.
The date of closing the deal
20 January 2020
Value of the transaction (in EUR)
+100 mln
Yield
n/a
Seller, plus brief information about the company
European Logistics Investment (ELI) is a dynamically developing logistic platform owned by Redefine Properties, Madison International Realty and Griffin Real Estate. Established by Griffin Real Estate and Redefine Properties in 2018 logistic platform ELI is a leading player in the Polish logistics sector with a high-quality, large-scale portfolio that comprises sixteen logistics parks with a total lease area of nearly half a million sqm located in the most important logistics regions in Poland.
European Logistics Investment entered into strategic alliance with Panattoni Europe, the European leader in industrial real estate, thanks to which the ELI platform is experiencing dynamic growth. The company plans further grow of the portfolio over the next years, to become a leading logistics platform in Poland.
Consultancy which advised Seller
Rymarz Zdort
Purchaser, plus brief information about the company
Madison International Realty is a leading liquidity provider to real estate investors worldwide. Madison provides equity capital for real estate owners and investors seeking to monetize embedded equity, to replace capital partners seeking an exit and to recapitalize balance sheets. The firm provides equity for recapitalizations, partner buyouts and capital infusions; and acquires joint venture. Madison focuses on existing properties and portfolios in the U.S., U.K., and Europe. Madison has offices in New York, London, Luxembourg, Amsterdam and Frankfurt, where the firm operates under the name of Madison International Realty GmbH.
Consultancy which advised Purchaser
Greenberg Traurig
Financing institution
n/a
Current occupancy level
The total leasable area reached nearly half a million sqm and is nearly fully leased, additionally ELI has approximately 130,000 sqm under construction and over 160,000 sqm for future development (purchased plots in Czeladź and Zabrze). Facilities are located in the most attractive logistics locations in Poland. They keep attracting new tenants and also secure renewing leases. Best prove is that the standing and assets under construction are leased in 94%. From beginning of the year till Q3 2020, ELI was able to secure new tenants for nearly 220,000 sqm (among others to high quality tenants like InPost, Jeronimo Martins, Rossmann, Schenker for 7-15 years) and to renew lease agreements in place for over 45,000 sqm with key tenants like Hellmann, Farutex, Pekaes, Hutchinson.
Please say why this deal should be considered for the award
The transaction was Madison’s first major logistics acquisition in Europe. Griffin Real Estate has attracted this high net worth investor providing a rare opportunity to enter the European logistics market with a significant investment into an existing large scale, high-quality portfolio Polish market. As part of the business plan for ELI, the parties aim to further grow the portfolio over the next years to create the leading Polish logistic platform. In the next 3-4 years, ELI plans to build further projects of about 2 million sqm. The transaction is also a showcase of how Poland continues to be an attractive market with its positive economic outlook and solid real estate fundamentals.