Madison International Realty has acquired a 46.5% equity stake in a €500m Polish logistics portfolio from majority owner Redefine Properties.
As part of the deal, Madison said it will provide a €150m commitment to the European Logistics Investment (ELI) platform, of which €83.7m will be used to acquire the 46.5% interest in the existing assets and developments in progress while leaving a commitment of €66.3m to expand ELI’s portfolio over the next years.
Redefine will match Madison’s commitment of growth capital.
The ELI portfolio – made up of 14 assets totalling around 560,000sqm – is co-managed by the 7% minority co-investor Griffin Real Estate and Panattoni Europe.
The assets are located in Warsaw, Lodz, Cracow, Silesia, Pomerania and Posnania regions.
Matthias Cordier, managing director at Madison International Realty, said this transaction represents an opportunity to enter the European logistics market with a significant investment into an existing large scale, high-quality portfolio.
Madison has been invested in the Polish market since May 2018.
“We believe the superior market dynamics in the Polish logistics sector present an attractive entry point compared with other European logistics markets as well as asset classes in Poland, Cordier said.
“We are excited to be working alongside an established group like Redefine and with premier asset managers and logistic developers in Griffin Real Estate and Panattoni.”
Andrew Konig, CEO of Redefine Properties, said: “With our new joint venture partner Madison, we are able to fast track our ambitious target to build ELI into a leading player in the Polish logistics sector, alongwith our market leading Polish retail platform EPP with a gross asset value of over €2.2bn.
“Poland continues to be an attractive market for Redefine with its positive economic outlook and solid real estate fundamentals.”
Nebil Senman, managing partner at Griffin Real Estate, said Griffin Real Estate will increase its stake as co-investor and will support both Madison and Redefine in executing its growth plans with respect to ELI.
“We believe that the Polish logistic markets will continue to grow as a key logistics hub for international e-commerce players but also an increasing number of new production companies.”