by Property Forum | Investment

UK investor Aberdeen Standard European Logistics Income PLC (ASLI) has signed an agreement for the acquisition of the Panattoni Lodz City VIII logistics park for €28 million.

The value of the transaction represents a net initial yield of 5.6 pct. The 31,500 sqm property comprises 27,888 sqm of warehouse space and 3,612 sqm of offices. It is 100 pct leased to six tenants that generate a net operating income of €1.59 million with a weighted average lease term of 6.7 years. These include manufacturers Bilplast, Tabiplast, Mecalit Polska and Alfa Laval, logistics operator EGT Express Polska, retailer KAN (which owns the Polish fashion brand Tatuum), and computer component manufacturer Compal, which signed a new seven-year lease in February 2021 and supplies the Dell plant less than 1 km from the park.

„The warehouse in Łódź is a very high-quality income producing asset located at the heart of one of the CEE region’s most strategically important manufacturing and logistics hubs. The asset’s proximity to the nearby Bosch Siemens campus provides strong long-term attraction to occupiers in this supply chain, while the new international railway station and its direct links to China and other European markets provide unrivalled international connections. The Łódź region is in high demand from occupiers and the vacancy rate is one of the lowest in Poland”, says Evert Castelein, a fund manager at ASLI.

“We believe strongly in Poland’s growth prospects and are pleased to be making our third acquisition in the country, and to have secured this asset at an attractive yield in a competitive logistics market. We are actively pursuing deals in the wider region and whilst the demand for logistics property has led to further yield compression, particularly in core markets, the overall return prospects for investors in this sector are expected to remain strong as operators continue to seek additional capacity and the reshoring of operations from overseas gathers pace,” he added.

Cushman & Wakefield advised Aberdeen Standard European Logistics Income PLC for this transaction.