CZECH REPUBLIC - European Property Investors Special Opportunities (EPISO), a fund co-advised by AEW Europe and Tristan Capital Partners, has entered into a joint venture with Czech industrial developer VGP.
The joint venture sees EPISO take 80% ownership of a portfolio of semi-industrial logistics complexes in and around Prague, valued at approximately €300m.
VGP developed the complexes and sold the stake in the portfolio, but will continue to provide management services to the EPISO fund in relation to the development pipeline. It will remain asset manager as part of the joint venture agreement.
The majority of the complexes were constructed between 2005 and 2010, including VGP's flagship park in Horni Porcernice, in north-east Prague, which itself accounts for 85% of the portfolio and is considered one of the best prime logistics parks in the city and the wider central and eastern European region.
The portfolio currently comprises more than 368,000 square metres of completed logistics assets, with a further nine buildings totalling 62,000 square metres to be developed.
Occupancy is at 99%, with a diversified tenant base of more than 110 occupiers.
Ric Lewis, chief executive at Tristan Capital Partners, said: "We are pleased to have acquired this logistics complex in Prague and to be partnered with VGP, which has an excellent reputation and track record in developing, leasing and managing logistic parks in the Czech Republic and throughout Central Europe.
"We are glad to be further diversifying the fund by investing in the growing Czech logistics market."
Daniel Harris, co-head of investment at AEW Europe, said: "This opportunity allowed us to purchase a core logistics park with very low vacancy.
"With the future development potential, we intend to create the pre-eminent logistic platform in Prague to benefit from future economic growth in the Czech Republic."
Jan Van Geet, chief executive at VGP, said: "We are delighted to have entered into this joint venture with EPISO.
"The transaction not only provides us with additional funds to develop our different business lines in a very well-performing market, but also allows us to benefit from the experience and track record of EPISO's investment managers, Tristan Capital Partners and AEW Europe.
He added: "The mix of our development experience combined with the investment experience of our new joint venture partner should put VGP CZ I in an excellent position to take advantage of the attractive prospects which lie ahead of us."