AEW, Tristan form Czech logistics alliance with VGP

European Property Investors Special Opportunities (EPISO), a fund co-advised by AEW Europe and Tristan Capital Partners, has entered into a 80:20 joint venture with VGP for a logistics portfolio focused around Prague in the Czech Republic. The venture is valued at approximately EUR 300 mln. VGP was the developer and seller.

The deal represents the largest real estate investment transaction in the Czech market since 2008.

The semi-industrial logistics complexes, the majority of which were constructed between 2005 and 2010, consists of six industrial parks concentrated in and around Prague. VGP's flagship park in Horni Porcernice, northeast Prague, accounts for 85% of the acquired portfolio. The portfolio currently comprises over 368,000 m² of completed logistics assets with a further nine buildings totalling 62,000 m² to be developed. Occupancy is at 99%.

In addition to providing development management services to the EPISO Fund for the development pipeline, VGP will be retained as asset manager, responsible for property management, facility management and leasing.

'We are glad to be further diversifying the fund by investing in the growing Czech logistics market,' said Ric Lewis, CEO of Tristan Capital Partners.

Daniel Harris, co-head of Investment at AEW Europe added: '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, CEO of VGP said the transaction 'not only provides the company with additional funds to develop its different business lines but also allows it to benefit from the experience and track record of EPISO's investment managers'. '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,' he said.

C&W acted for the EPISO Fund and JLL for VGP. AEW Europe/Tristan was represented by a team of lawyers from the Global Real Estate Group at Salans.