Aberdeen Standard’s listed logistics fund, Aberdeen Standard European Logistics Income, has signed the acquisition of a logistics and distribution property in Lodz, Poland, for €28 mln, representing a net initial yield of 5.6%.
The 31,500 m2 Panattoni Lodz City VIII Logistics Centre was acquired from logistics and industrial developer Panattoni. It consists of 27,888 m2 of warehouse space and 3,612 m2 of office space. The asset is 100% leased to six tenants generating a Net Operating Income of €1.59 mln and with a Weighted Average Lease Term of 6.7 years.
Tenants at the asset include manufacturers Bilplast, Tabiplast, Mecalit Polska and Alfa Laval, logistics operator EGT Express Polska, retailer KAN, which owns the Polish fashion brand Tatuum, and Compal, one of the world’s largest computer component manufacturers, which signed a new 7-year lease in February 2021 and supplies the DELL factory located less than 1 kilometre from the site.
‘The warehouse in Lodz is a very high-quality income producing asset located at the heart of one of the CEE region’s most strategically important manufacturing and logistics hubs,’ noted Evert Castelein, fund manager for ASLI. ‘We believe strongly in Poland’s growth prospects and are pleased to be making our third acquisition in the country, and to have secured this asset at an attractive yield in a competitive logistics market.’
The fund is ‘actively pursuing deals in the wider region’, he added. ‘While the demand for logistics property has led to further yield compression, particularly in core markets, the overall return prospects for investors in this sector are expected to remain strong as operators continue to seek additional capacity and the reshoring of operations from overseas gathers pace.’
Cushman & Wakefield advised Aberdeen Standard European Logistics Income PLC.
