CROMWELL Property Group has entered into a partnership with Bouygues Construction subsidiary Linkcity to invest in a €500 million portfolio of logistics and light industrial assets throughout central and eastern Europe.
Linkcity and VCES, affiliates of global construction company Bouygues, will take on project development, design and construction duties for the portfolio, while Cromwell will source investment funding and provide asset management services for each project upon completion.
Assets accounting for more than 25% of the portfolio’s targeted value have been identified. Beginning the rollout will be an 8,000 sqm logistics facility 100 kilometres east of Prague in the Czech Republic, which is 88% pre-let and due for completion in the third quarter of 2018.
Pre-commitments are being sought for the second and third assets, which cover a combined 180,000 sqm.
“We are delighted to partner with an experienced developer of the calibre of Bouygues to create a portfolio of premium logistics and light industrial assets that are already in demand from transport and e-commerce related occupiers,” Cromwell’s managing director for Europe, Mark McLaughlin, said.
Simon Garing, Cromwell chief capital officer, said the group had identified a significant investment opportunity in Central and Eastern Europe, where it believed there will be a range of future economic, infrastructure and other growth opportunities.
“This partnership is another step forward for our funds management business. It is also an endorsement of our ability to offer international capital partners with investment opportunities in key sectors across Europe.”
David Labardin, chief executive officer of Linkcity Czech Republic, said the LiNK Hradec Kralove project is “just the beginning”, with further projects located in close proximity to the main cities in the Czech Republic, Slovakia and Poland.
Cromwell last year listed its Cromwell European Real Estate Investment Trust on the Singapore Stock Exchange, with a focus on the office and light industrial and logistics sectors in the Netherlands, Italy, Germany, Denmark and France.
It slimmed down the vehicle from €1.8 billion to €1.354 billion after a lack of interest from investors, taking out seven properties in Poland.
Australian Property Journal