South African investor Fortress REIT has acquired two logistics parks in Bydgoszcz and Stargard from Griffin Property Finance. This is the first direct acquisition in Poland by Fortress REIT and the value of the transaction has not been disclosed.
Fortress REIT has acquired two logistics parks owned by Griffin Property Finance - a financial platform managed by Griffin Real Estate who is an investment and asset manager in private equity specialised in the real estate sector – Waimea Logistic Park Bydgoszcz and Waimea Logistic Park Stargard. Waimea Logistic Park Bydgoszcz offers 48,300 sqm of existing warehouse space with the possibility to expand to 91,000 sqm GLA. Waimea Logistic Park Stargard comprises an existing hall of 11,500 sqm and the potential to expand to approximately 80,000 sqm. Both projects are well located within regional industrial zones in the vicinity of urban agglomerations. Major roads nearby allow for fast transportation of goods and its proximity to the German border creates strong interest from Polish and foreign companies in leasing the space.
“Fortress REIT is South Africa’s third-largest REIT and the largest owner and developer of core, premium-grade logistics real estate. Fortress is also the largest shareholder in NEPI Rockcastle Plc, active in high-growth retail in Central and Eastern Europe. Central and Eastern Europe’s geographic proximity and infrastructure-rich access to high value Western European economies present a powerful investment case for logistics real estate in the region. This mirrors our own market dynamics and strategy where we also experiencing growth in Logistics. Fortress’s focus to own and develop state-of-the-art logistics parks and combined with our established on-the-ground expertise in logistics and related development in the construction we believe this acquisition will be the start of more to come", said Steven Brown, CEO of Fortress REIT.
“It is a great satisfaction to see that both projects, which we have supported since the beginning with our capital, and for which we have provided financing, have been so well received by the market, as evidenced by the full commercialization. This is yet another example of a project which benefited from Griffin Property Finance’s commitment. We are convinced that both projects have great development potential and will be appreciated by existing as well as new tenants”, comments Przemysław Czuk, Chief Financial Officer & Senior Partner at Griffin Real Estate.
We are pleased that the transaction was closed smoothly. Waimea Holding developed both properties and we supported the vendor with our detailed knowledge of the assets. During the negotiation stage, our market experience was a strong support for both parties. We are grateful for the trust that Fortress REIT has placed in us. We are grateful to the Fortress REIT for their trust in our services", comments Bartosz Klimek, Leasing & Property Management Director at WHSA.
„The transaction began just before the pandemic and was conducted remotely. Teams have been working for several months on the project remotely and in some cases never having physically met. We are therefore especially pleased with the closing, and we would like to congratulate the seller and the buyer on their success", says Krzysztof Cipiur, Director in the Capital Markets at Knight Frank.
“The transaction is a perfect example of the investors' continuous interest in well-located logistics parks in close proximity to Polish cities. Favourable market fundamentals and solid growth prospects prompted our client, Fortress REIT, to enter the Polish market through acquisitions in Bydgoszcz and Stargard” – comments Aleksandra Sierocińska, Senior Consultant in the Capital Markets department at Cushman & Wakefield.
Waimea Holding SA will provide development and management services to the new owner, Fortress REIT Limited.
During the transaction, the Griffin Property Finance platform was represented by the consulting company Knight Frank, and the buyer by Cushman & Wakefield. Moreover, tax and financial services were provided by PwC, technical advice was delivered by Cushman & Wakefield, and legal services by Dentons, SSW Solutions, Allen & Overy and White & Case.
