Accolade Group, in cooperation with its JV partner, invested almost €26 million in a Class A warehouse facility in Wielenin-Kolonia in Central Poland. The entire facility is occupied by K-Flex, a worldwide leader in the production of elastomeric insulation, with a lease term of 17 years.
K-Flex's presence in Wielenin dates to 2010 and the facility is the company’s largest production facility in Europe. K-Flex is an Italian manufacturing company, currently with a presence in 64 countries, operating 14 production facilities, employing more than 3000 employees.
“K-Flex is a blue-chip tenant with a strong financial background and fantastic potential to develop even more over the next years. Since 2010, the company’s global sales and profits grew rapidly year-to-year for 10 consecutive years. Apart from this, the insulation products market is expected to grow by almost 40% in a 5-year perspective. These are just a few of the reasons why we are happy to welcome K-Flex in our portfolio. We hope to cooperate closely with the company and build a strong and fruitful business relationship” comments Michał Białas, Country Head of Accolade Poland.
“Intensive development and long-term investment plans require cooperation with reliable and responsible partners. We are glad to have another company with a global reach and many years of experience join our business partners. We are convinced that long-term cooperation will bring mutual benefits and will support us in the further development of our business” comments Bartłomiej Gröbner, Managing Director at K-FLEX Polska Sp. z o.o.
The size of the K-Flex BTS property that is the subject to the transaction exceeds 34,500 sq m and it consists of three connected buildings. The facility is located in the village Wielenin situated in the Łódzkie voivodeship. The nearest city is Łódź, with a population of almost 730,000 people. Central Poland, including Łódź with its surrounding area, is the third largest warehouse market in Poland according to JLL Industrial market overview. It has been one of the most popular locations among tenants in 2020 and this market has the best future growth prospects. The main drivers behind this development are, except for its location in the heart of Poland, very good road connections at the intersection of the A1, A2 and S8 motorways, as well as the advantages that a competitive labour market has to offer.
“Over the last few years, and in particular during the last several months of the pandemic, we have observed a growing interest of institutional investors in modern BTS warehouse facilities with a long-term leasing profile (10-20 years) in the Polish real estate investment market. They are interested in facilities that are let to strong industrial and logistics tenants – usually market leaders in their industries. Of course, additional key points here are the attractive location and convenient access to the motorway and expressway network. The K-Flex BTS transaction fits perfectly into this trend. As the JLL Capital Markets team, we are proud to be part of this transaction and advise the Seller - Crescendo Real Estate. We are convinced that we will witness more transactions of this type in the second half of 2021 and the beginning of 2022", says Andrzej Magiera, Senior Consultant at JLL Capital Markets Poland.
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