News Article investment Panattoni Europe Poland REICO warehouse
by Property Forum | Investment

ČS NEMOVITOSTNÍ FOND, managed by REICO investiční společnost České spořitelny, a.s., is expanding its portfolio with the addition of the second phase of the Panattoni Park Tychy located between the Polish cities of Tychy and Bieruň, Poland. The total number of properties in the fund’s portfolio thus increased to 20, with the share of industrial properties in the fund’s portfolio reaching approximately 14%.

Panattoni Park Tychy DC2 is a newly built logistics property that was completed in the second half of the last year. It comprises primarily warehouse premises with an aggregate leasable area of 60,700 sqm, which, together with the DC1 building acquired by ČS NEMOVITOSTNÍ FOND last year in July, exceeds 115,00 sqm; Panattoni Park Tychy DC2 logistics park was built to suit a single tenant, the international retail chain Action, which operates nearly 1,700 stores across the European Union, primarily in France, Belgium, the Netherlands, Germany, Austria, Czech Republic, and Poland.

“The acquisition of the Panattoni Park Tychy DC2 represents a substantial increase in industrial exposure for the ČS NEMOVITOSTNÍ FOND. We are also creating room for expanding our loan book at favourable financing terms with a positive impact on fund return”, says Tomáš Jandík, Chairman of the Board of Directors of REICO IS ČS.

The property is located in an attractive submarket of Poland’s Upper Silesia Region, the second largest industrial logistical area in all of Poland, and currently accounts for 18% of the entire offer of industrial areas in the country. Panattoni Park Tychy DC2 is located two kilometres from the A44 road, which is linked to the backbone A4 motorway connecting the Polish cities of Cracow, Katowice, and Wroclaw with Cottbus, Germany. The building aspires to the BREEAM Excellent environmental certificate.

ČS NEMOVITOSTNÍ FOND purchased the property from a joint venture of the leading logistics developer Panattoni Europe and investment and asset management company Griffin Real Estate. The buyer was represented in the transaction by CMS, TPA, Arcadis, and Cushman & Wakefield.

With the acquisition of Panattoni Park Tychy DC2, ČS NEMOVITOSTNÍ fond has increased its industrial exposure of its portfolio to 14% whilst broadening its sectoral and regional diversification. The portfolio currently includes 20 properties with a total market value in excess of CZK 34 bn. More than 102,000 unit holders had invested in the fund as at the end of November 2021. Return of the fund has reached on average approximately 2.9% per annum in the last 10 years (as at 31 December 2021).

ČS NEMOVITOSTNÍ FOND was established in February 2007 and is the largest and oldest Czech real estate mutual fund. It is designed primarily for conservative investors. The fund now holds eight properties in the Czech Republic, seven in Slovakia, and now five in Poland.