News Article investment KGL LeadCrest lease back Poland warehouse
by Property Forum | Investment

LeadCrest Capital Partners announced two transactions in Poland: a new industrial sale-leaseback as well as €20 million sale-leaseback acquisition of three retail warehouses.

The European fund announced entering an exclusive long-term partnership with KGL via the acquisition of a 9,500-sqm light industrial and logistics facility in Greater Warsaw. Situated in Czosnów, the asset enjoys a location alongside the S7 expressway which is currently being refurbished and extended. The facility was extended and modernised in 2019 and comprises production and warehouse space as well as office accommodation. The site also includes 20,000 sqm of undeveloped land, allowing for future extension of the facility. The parties have agreed to a modernisation plan which will improve the energy performance of the facility. The asset is let on a 20-year triple net lease to KGL. 

Founded in 1992, KGL is a Polish speciality chemical company, the market leader in food packaging for the meat, fresh fruit and vegetable, biscuits, and takeaways product segments. In addition, the company also distributes granules and produces tools.

Krzysztof Gromkowski, President of the Board, of KGL said: “We are very excited about this new long-term partnership with LeadCrest. Whilst the proceeds of this transaction will be used to repay long-term debt thus decreasing our overall cost of financing and will support the further development of KGL. We also very much look forward to the next steps of this cooperation, which will allow us to fund our operations and growth plans. Furthermore, in a rapidly rising 2 interest rate environment where many investors are sitting on the side-line, it was comforting to work with an experienced investor, committed to investing further in Poland, and who knew and understood our food industry, thus providing us with certainty of execution.”

Georges Asmar, Portfolio Manager at LeadCrest Capital Partners commented: “This new alliance with KGL is another example of our company’s strategy to invest in resilient sectors and partner with robust businesses by offering them a tailored long-term financing solution to fund their growth and energy transition objectives. We are delighted to be working with KGL, a true leader in their sector which is a strategic pillar for LeadCrest. This acquisition is a testament to our commitment to Poland, where we have been one of the most active investors over the past 18 months.”

Moreover, LeadCrest acquired three retail warehouses in Poland. The portfolio comprises assets totalling 18,200 sqm and is located in industrial and logistics hubs. Two assets are in Warsaw: one in the city centre near Warsaw Praga station, and the other on Pulawska. The third asset is in Czeladź, Greater Katowice, Upper Silesia. The portfolio is let on a 20-year triple-net master lease to 3W. Rent is indexed annually to the Euro HICP. The parties have agreed to a modernisation plan which will improve the energy performance of the portfolio.

3W is a builders' merchant and home improvement retailer. Founded in 2009 by the current management team, it has grown both organically and externally. Its latest acquisition – Tadmar, in October 2022 – has doubled its footprint to approximately 100 branches.