News Article AG Capital Bulgaria industrial investment joint venture Lion's Head Investments logistics SEE
by Property Forum | Investment

Lion’s Head, a joint venture company between AG Capital and Old Mutual Property, signed a contract for acquiring BPD – a logistics and industrial properties investment company. This is the biggest deal in the sector for the last years with an investment of €71.4 million.

With this transaction, AG Capital enters a new commercial property class for the group and becomes the second-largest owner of industrial properties in Bulgaria. The purchase was realized with an investment by the International Finance Corporation (IFC) - part of the World Bank and financing by UniCredit Bulbank. The legal advisor for the transaction is Wolf Theiss Bulgaria.

„The acquisition of BPD is a significant achievement for the Lion's Head team and marks the beginning of our ambitious plan for regional expansion of our portfolio in a new business sector and in new markets - Bulgaria, Romania and Poland. Our plan is to keep the BPD brand and further develop it together with the existing team. Our goal is to ensure continuity and a seamless transition of the business to Lion's Head standards while maintaining a high level of governance“, says Tanya Kosseva-Boshova, Managing Director at Lion’s Head  

„Lion's Head will continue the good practice of the established BPD brand, acquiring the platform of 3 logistics parks and a successful team. The three projects have a total built-up area of 75,065 sqm and are in key locations of the country - Sofia, Varna and Ruse. We plan to expand the current assets with the construction of an additional 28,000 sqm in Varna and Ruse.“, adds Vladimir Gurdjieff, Head of Logistics and Industrial at Lion’s Head

The logistics centre that Lion's Head acquired houses long-term international tenants such as Phoenix Pharma, DHL, DB Schenker, Carlsberg, Speedy (Geopost), Wurth, Sopharma and more than 50 other companies.

The largest of the three logistics parks is located in Varna. The centre is dominant for the city and the region and offers its customers 42,241 sqm of modern warehouse, office and commercial spaces. It has a strategic inner-city location with quick and convenient access to all parts of the city. The park is one of the few in our Maritime Capital that offers both dry warehouse and temperature-controlled storage areas. As part of the company's ESG strategy, the park also has a rooftop photovoltaic power plant.

The park in Sofia has a strategic location on the eastern arc of the Ring Road, providing quick access to both the central city areas and the airport, as well as the Hemus and Trakia highways. The project was chosen as the main warehouse of the leading pharmaceutical distribution company Phoenix Pharma, and also by another Bulgarian leader in the field of pharmaceutical products, Sopharma Trading. Other customers include significant international companies such as Wurth and Jotun.

The logistics centre in Ruse is located in close proximity to Danube Bridge 1 and the key border link with Romania, in the city's modern industrial zone.