London-based investor, developer and asset manager Kajima Properties and investment manager Savills IM have launched a new strategic partnership to target increasing investor appetite from Asia for acquisitions in the European logistics sector.
The JV has completed its first deal with the acquisition of Panattoni Europe’s interest in the 144,880 m2 Lódz City VI logistics park in central Poland.
The two partners said the venture was motivated by the rapid growth of e-commerce, accelerated during the Covid-19 pandemic, which has fuelled demand for logistics and distribution hubs across Europe. In Poland, warehouse assets worth €1.46 bn were traded in Q1 2020 alone, close to the total for the whole of 2019 which hit €1.48 bn. According to JLL, Asian capital sources accounted for approximately a third of 2019 transaction market volumes.
John Harcourt, managing director of Kajima Properties Europe, said: 'While Kajima has been an active investor in European logistics development for over four years now, we are now actively looking to complement this with a longer-term strategy of identifying and acquiring a diversified range of logistics assets in partnership with the growing appetite of Asian investors seeking the stable returns offered by the sector and region.'
He added: 'We have already identified a number of target opportunities with which to grow this side of the business.'
Jon Crossfield, head of strategic partnerships at Savills Investment Management, noted: 'We are delighted to enter into a partnership with Kajima in Europe and look forward to growing our AUM together. The combination of our own track record in the sector in Europe with now over €4 bn under management, plus Kajima’s ability to develop high quality assets across CEE and Western Europe offers a really exciting opportunity for our clients.'
Dentons advised Kajima, DLA Piper and Savills advised SIM, and Greenberg Traurig advised Panattoni.
Kajima sold two industrial assets in Komorniki, Poznan in January, providing 87,000 m2 of logistics space as part of a 280,000 m2 portfolio also acquired by clients of Savills IM. Beyond Poland, Kajima also announced its first warehousing and logistics park in Spain earlier this year, and recently acquired a logistics site in Rotterdam.
