European real estate fund GreyKite and Central European developer White Star Real Estate have set up a new €300 mln joint venture focused on logistics real estate.
To kick off this venture, GreyKite has acquired a logistics portfolio in Poland, consisting of three properties strategically located in Warsaw, Strykow, and Gliwice.
White Star, who previously developed the properties, will continue to play a key role as both asset and property manager.
The 142,000 m2 portfolio boasts an occupancy rate of nearly 100%, spread across more than 40 tenants, with an average lease term of three years.
These properties are situated in prime industrial and logistics hubs within Poland. Located in Warsaw, Strykow (near Lodz), and Gliwice (Upper Silesia), they are near major motorways.
Michael Abel, founder and CEO of Greykite, commented: ‘This transaction is consistent with our strategic focus on scalable investment themes in high-conviction sectors underpinned by compelling fundamentals. The Polish logistics market is benefitting from a number of structural drivers, including the continued trend for nearshoring as a result of its European single market access and relative affordability, and high e-commerce penetration. We look forward to scaling the JV alongside a best-in-class partner, whilst simultaneously closing in on a number of other high-profile acquisitions.’
Dan Valenzano, senior partner of Greykite, added: ‘This acquisition represents an attractive entry point into the logistics sector. In addition to the compelling acquisition yield, the portfolio offers numerous leasing, asset management and investment initiatives we will look to implement alongside White Star. Together, Greykite and White Star aim to further scale the JV over the next 18-24 months.’
Peter Huntley, CEO of White Star, concluded: ’The industrial warehouse and logistics services market in Poland is developing dynamically with supportive fundamentals. We are excited to partner with Greykite in addressing this continuing demand growth for warehouse space and to expand our new JV.’
This acquisition follows the official launch of GreyKite and the fund in March of this year. The fund has secured substantial capital commitments from renowned global investors, including Capital Constellation, managed by Wafra Inc., and Leucadia Asset Management.
GreyKite focuses on investing in real estate assets with strong, long-term fundamentals across various property types in select European markets.
White Star Real Estate has completed over 50 development projects of various asset classes and also provides asset and property management services.
