A new €500m partnership between Cromwell Property Group and the construction arm of industrial group Bouygues has already identified more than a quarter of its assets.

Cromwell Property and Linkcity, member of Bouygues Construction, have joined forces to invest in the rollout of a portfolio of logistics and light industrial assets in Central and Eastern Europe.

Cromwell Property said the partnership has identified more than 25% of its portfolio. The portfolio is targeting an eventual gross asset value of €500m.

The first asset is an 8,000sqm logistics building located east of Prague, in the Czech Republic, it is already 88% pre-let and due to complete in the third quarter of the year.

The larger second and third assets, covering a combined 180,000sqm, are currently also seeking pre-let commitments, it said.

Linkcity and another Bouygues subsidiary VCES, will be responsible for the project development, design and construction of the portfolio, while Cromwell will source investment funding and subsequently provide asset management services upon the completion of each project.

Cromwell’s managing director for Europe, Mark McLaughlin, said: “We are delighted to partner with an experienced developer of the calibre of Bouygues to create a portfolio of premium logistics and light industrial assets that are already in demand from transport and e-commerce related occupiers.”

Simon Garing, Cromwell chief capital officer, said: “We have identified a significant investment opportunity in Central and Eastern Europe, where we believe there will be a range of future economic, infrastructure and other growth opportunities.

“This partnership is another step forward for our funds management business. It is also an endorsement of our ability to offer international capital partners with investment opportunities in key sectors across Europe.”

David Labardin, CEO of Linkcity Czech Republic, said: “This is a great opportunity to combine our development expertise in international, Czech, and Slovak markets with a strong investor partner who has an excellent track record of managing assets across Europe.”

Pascal Minault, CEO of Bouygues Entreprise France Europe, said: “As part of our growth strategy we will explore further opportunities to work with Cromwell throughout our Linkcity network in other European countries.”