News Article industrial investment logistics Panattoni Poland REICO Silesia
by Property Forum | Investment

The ČS nemovitostní fond, managed by REICO, is acquiring Panattoni Park Tychy DC1 in Poland. The value of the acquisition is approximately CZK 1.1 billion (€42 million). This brings the number of properties owned by the fund to 19.

“The Polish logistics market is going through an unprecedented growth phase. By expanding into this attractive market, the ČS nemovitostní fond also further improves its sectoral and geographical diversification, which is the core of our conservative real estate allocation’, says Tomáš Jandík, CEO of REICO IS ČS.

Panattoni Park Tychy DC1 is a premium logistics property that was completed in the first quarter of this year. It is primarily comprised of warehouse space, with a total leasable area of 53,900 sqm. The largest tenants of the logistics park are the supranational corporations Denso (which manufactures, e.g., automobile air-conditioning units) and HAVI (which specialises primarily in supplies for international food chains). The third largest tenant is the Polish logistics and freight-forwarding company Regesta.

The property is located in Upper-Silesian Region, the second largest industrial and logistics submarket in Poland, which currently accounts for 18% of the total supply of industrial space in the country. Panattoni Park Tychy DC1 is situated two kilometres from the A44 road that links to the backbone A4 motorway, which connects the Polish cities of Krakow, Katowice, and Wroclaw with Cottbus, Germany. The building complies with BREEAM Good certification criteria.

ČS nemovitostní fond acquired the property from a joint venture of the CEE investment group Bluehouse Capital and Panattoni. The buyer was represented by CMS, TPA, Cushman & Wakefield, and Arcadis in the transaction.

With the acquisition of Panattoni Park Tychy DC1, ČS nemovitostní fond boosted the share of the industrial sector in its portfolio to 10% and broadened its sectoral and regional diversification. The fund’s portfolio now comprises 19 properties, with an aggregate market value in excess of CZK 32 billion. As at the end of May 2021, more than 96,000 shareholders were invested in the fund, its return in 2020 amounted to 2.2%, and to an average of approximately 2.8% per annum over the last 10 years.

The ČS nemovitostní fond was established in February 2007 and is the largest and the oldest Czech mutual real estate fund. It is intended primarily for conservative investors as its long term yield aims to surpass inflation and the long-term yield of government bonds. The fund currently owns eight properties in the Czech Republic, seven in Slovakia and four in Poland.