A US investor is forward-funding the development of a last-mile logistics facility in the Czech Republic through a separate account managed by Invesco Real Estate.
The 37,900sqm, grade-A facility is adjacent to the Prague ring road and is being constructed by Logport Development.
It will consist of 11 separate units due to be completed by Q1 2024.
Seven units, branded LogSpace, will take the form of traditional logistics buildings, built for larger tenants, and the remaining four, called LogBox, will be a blend of smaller warehousing, office and showroom assets. More than half of the space is pre-let to a range of companies.
The site will be rated BREEAM In-use Excellent once completed and BREEAM New construction Very Good. It will use solar panels, ‘grey water’ and rainwater retention and green facades.
Henry Grant, director of fund management at Invesco Real Estate, said: “The continued pressure on global supply chains, further forecast e-commerce penetration and the supply demand imbalance for new-build last-mile logistics space, serving Prague, makes for a highly compelling investment case to drive long-term outperformance.
“Partnering with logistics specialist Logport will ensure we deliver a best-in-class, sustainability-led last-mile logistics park. We are delighted to have secured this logistics development for one of our long-standing US clients, who plan to further grow their European real estate exposure.”
Tomas Picha, senior director of transactions for central and eastern Europe at Invesco Real Estate, said: “Such opportunities are a rare commodity in the Czech Republic and even more so in Prague, due to a stringent planning system. However, with high demand from tenants, we expect the last-mile sector to grow significantly.
“Prague is a major driver of the Czech economy, and its inhabitants represent the wealthiest segment, ranking third by GDP per capita in terms of purchasing power in the EU.”
David Vais, CEO of Logport Development, said: “The prevailing strong demand from tenants confirms both the wisely developed concept, as well as favourable timing of this project.
“We are confident that successful completion of Logport Prague West shall create strong basis for future potential co-operation with Invesco Real Estate.”