Develia has signed a joint venture agreement with Hillwood. As part of the agreement, a special-purpose vehicle will be created to develop a logistics park with a minimum area of 400,000 sqm GLA on a property located in Malin near Wrocław. The estimated value of the entire project will exceed PLN 1.5 billion.
As part of the cooperation, Develia will also conclude a preliminary agreement with Hillwood for the sale of the property on which the logistics centre will be built. Its content has already been agreed and is annexed to the JV agreement. The project will be developed in at least four phases, so the agreement provides for the phased sale of the land to a special-purpose vehicle in which Develia will hold a 25% stake. In the base scenario, Develia does not foresee any additional financial involvement in the realisation of the logistics centre.
The realisation of the logistics centre requires the partners to cooperate at all stages of the project - from obtaining the necessary administrative decisions, through construction, to the commercialisation of the facility. The project will draw on the experience of both companies, but operational management will be carried out by the Hillwood team.
"The joint venture agreement finalises what was agreed in the letter of intent. Gaining a partner like Hillwood will allow us to develop the land at Malina in line with our strategy. We estimate that the proceeds from its sale, which we will implement in stages, will amount to approximately €34.7 million, which is above the current book value of PLN 70 million. In addition, Develia will hold a share in the profits from this project. Such a cooperation model will allow us to maximise the value in the divestment of this asset, which the company bought in 2007", says Andrzej Oślizło, president of Develia.
"The logistic park, which we will build in cooperation with Develia, is an answer to the unflagging demand for modern warehouse space in the Wrocław and Lower Silesia region. The Hillwood team has extensive experience in constructing logistics and office parks in this region. The facilities we build are very popular among our clients due to their high quality, as well as their adaptation to the local landscape", says Hubert Michalak, President of Hillwood Polska.
