Korean institutional investors have invested €71m to buy a 123,000sqm logistics unit in Poland.

Savills Investment Management said it has completed the acquisition of the logistics unit leased to Leroy Merlin in Piątek from Invesco Real Estate. The acquisition was made on behalf of Korean institutional investors managed by Vestas Investment Management.

Savills IM said Leroy Merlin have consolidated their Polish logistics operations into the unit and have committed to occupy the building for 10 years.

The acquisition was structured as a forward commitment to purchase upon completion of the construction.

This latest acquisition brings Vestas IM’s European logistics assets under management €1bn of which €470m is in partnership with Savills IM.

Alistair Ennever, director in the strategic partnerships team at Savills IM, said: “We are delighted to have advised Vestas and their investors on the acquisition of the Leroy Merlin facility in Piątek.

“The asset is well located and benefits from a long-term lease commitment from the tenant.”

John Palmer, head of industrial investment at Savills, Poland said: “The transaction underlines the attractiveness of Central Poland both for institutional investors and the occupier market.

“Central distribution centres of large retailers, manufactures and 3PLs consider this central location attractive for serving both their domestic and international clients and networks. From an investment fund perspective, the location is core, in demand and highly sought-after.”

Petr Sramek, director of CEE transactions at Invesco Real Estate, said the successful sale is a reflection of the promising combination of a good asset with a stable, trusting long-term tenant in a strong location.

Jonathan Pierce, senior director – fund management at Invesco Real Estate, said: “The scale of our pan-European strategy provides great flexibility to our transaction approach, driving income and/ or capital return at the asset level to target consistently strong performance overall.

“Having funded the development and by choosing to sell now, we have exceeded our business plan and crystallised strong performance for our investors.”