Episo agrees EUR 300m Czech logistic parks deal

European Property Investors Special Opportunities fund (Episo) has agreed in principle to acquire an 80% interest in six logistics complexes owned by CEE industrial property specialist VGP in the Prague region.

VGP said that the transaction value is in excess of EUR 300 mln, which includes some future development pipeline. The sale is subject to satisfactory due diligence.

VGP will continue to be responsible for the operational management of the parks, with Episo, a property fund co-advised by AEW Europe and Tristan Capital Partners, functioning as the capital partner. Closing of the transaction is anticipated during the first quarter of 2011.

VGP designs, constructs and leases out logistics complexes and semi-industrial parks in the region of Central and Eastern Europe. The company operates a total of 19 parks.

Jan Van Geet, CEO of VGP, commented: 'VGP wishes to take advantage of the improving real estate yields seen for prime semi-industrial real estate projects in the Czech Republic. The countries in the mid-European region and especially the Czech Republic, where VGP is active, have seen a strong economic recovery during the past months which has been translated in sound market conditions for the leasing of semi-industrial buildings.

'This new step in the evolution of VGP will provide the group with the necessary financial resources to invest in the expansion of its land bank and to further concentrate on its core development activities aimed at optimising shareholder value, without having to tap the capital markets.'