SEGRO has purchased the Żerań Park II warehouse complex, located in Warsaw, from AREA Property Partners and Apollo Rida Poland for 43.2 million euros.
Built between 2005 and 2011, Żerań Park II consists of modern warehouse buildings adapted to the needs of urban distribution and an office building with an area of 1,800 sqm. The park is located in the vicinity of the Toruńska Route and offers a total of 49,900 sqm of leasable space. The space is approximately 85 percent leased with a weighted average unexpired lease term (WAULT) of 3.5 years and currently generates an annual rent of 3.3 million euros. The purchase price corresponds to a net initial yield (NIY) of 7.5 percent and an equivalent yield (EY) of 8.2 percent. Currently, the space at Żerań Park II is leased by leading Polish and international companies, including Farutex, Leroy Merlin, Peak&Cloppenburg, Schenck Process, and UCB Pharma.
This is the second property acquisition in the Warsaw area. In September 2012, SEGRO acquired the Ożarów Business Centre complex (currently SEGRO Business Park Warsaw) for 14.1 million euros. The 36,600 sqm park consists of four modern warehouses intended for logistics operations and urban distribution, located 16 km from the center of Warsaw, in the immediate vicinity of the new A2 motorway connecting Warsaw with Poznań and Berlin.
– Both acquisitions significantly strengthen the market position of SEGRO in Warsaw, Poland’s largest city and its undisputed economic center. These actions are in line with the company’s adopted strategy of strengthening our presence in selected key conurbations by reinvesting capital in the purchase of attractive properties and development. Both parks are perfectly located and meet the demand for urban logistics space from companies in the retail sector serving customers in the city center. The complexes are an excellent complement to our current portfolio, which consists mainly of big-box warehouses – commented David Sleath, CEO of SEGRO. – The concluded transactions increase the space offered by SEGRO in the Warsaw region to nearly 140,000 sqm. Additionally, 24,000 sqm of pre-let space is currently under construction, which will be completed in the third quarter of 2013 at Tulipan Park Warsaw, and another 50,000 sqm remains as development potential for this park. As a result of the latest transaction, SEGRO has a portfolio of properties in Poland amounting to over 700,000 sqm of modern warehouse space.