REICO Long Lease, an open-ended mutual fund managed by REICO Investment Company of Erste Asset Management, has added another logistics property in Poland to its portfolio.
The newly acquired LPP Distribution Center was completed in Q1 2022 with BREAM Excellent certification and a leasable area of 103,864 sqm. Its location provides direct access to the main S5 and S10 transport arteries.
The tenant is LPP Logistics, part of the multinational fashion group LPP. It specialises in the distribution of clothing, footwear and fashion accessories, which LPP offers through an extensive network of brick-and-mortar stores and online stores. The long-term lease agreement with the option of a 3-year extension represents a strong lease commitment.
“We chose the property due to its location in one of the main logistics hubs in Poland, which, thanks to its infrastructure and concentration of key tenants, plays a key role in supplying not only the Polish market, but also partly Germany. The acquisition naturally fits into the fund’s investment strategy,” says Jiří Horák, CIO and Vice Chairman of the Board of Directors of REICO IS EAM.
The REICO Long Lease fund purchased the property from CBRE IM. The buyer was represented in the transaction by CMS, KODA, Gleeds and Colliers.
By acquiring this property, the REICO Long Lease fund increased the share of the real estate component in the fund’s assets to 70%. The total market value of the fund’s portfolio is now approximately CZK 5 billion (€202 million). As of the end of April 2025, over 53 thousand shareholders had invested in the fund. The fund’s targeted annual return is in the range of 4-6%.
