P3 to invest €85m in Prague logistics development

PointPark Properties (P3) has bought 22 hectares of land alongside the D11 motorway east of Prague for a new 120,000 m2 logistics park.

The new development involving a total investment of around €85 mln will, when complete, boost P3's total lettable area around the Czech capital by nearly 40%.

Based in Prague, P3 is the specialist investor, developer and asset manager of warehouse properties acquired last year by North American investors TPG and Ivanhoé Cambridge.

Tomáš Míèek, country head P3 Czech Republic called the Czech Republic one of Europe’s 'logistics hot-spots'. 'The supply of distribution properties here has tightened considerably over the last few years. Our current parks have very little space left for new developments, so this investment will allow us to meet the needs of our customers as they expand in the market.'

The D11 is the main motorway link between Prague and the eastern part of the Czech Republic and southwest Poland. The P3 site is located close to Mstìtice at Exit 8 on the D11, about 8 km from the edge of Prague and close to the city’s ring road with easy connections to the motorways leading to Germany, Austria and Slovakia.

PointPark Prague D11 logistics park will have space for seven warehouse buildings and is expected to be of particular interest to third party logistic companies and retailers - sectors that have been rapidly growing in the Prague region in recent years. Planning permits are already in place for the first buildings at the site.

The new park will be P3’s third logistics facility in the Prague region and will increase its total lettable area around the city to 428,000 m2. The company’s other parks in the region are PointPark Prague D1, 16km south of the city, a four-building facility with an area of 176,000 m2, and PointPark Prague D8 to the north that has five buildings with a sixth under construction and total space of 132,000 m2.

In the past 12 months, P3 has completed nearly 50,000 m2 in expansions at D1 and D8 for clients Yusen, DHL Express and Mountfield – making the Czech Republic the company’s most active development market in Europe. Neither of the two existing parks has any significant vacancy.

P3's CEO Ian Worboys said the land deal marked 'a substantial acquisition for P3'. 'It is the first site purchase since we were bought by our new shareholders TPG and Ivanhoé Cambridge last year. It shows their commitment to grow the P3 platform building upon the skill base of the P3 team and our knowledge of the Czech market.'0

P3 has also been linked to the acquisition of the €500 mln Project Bora Bora portfolio from Tristan Capital Partners. The package consists of around 930,000 m2 of sheds in Germany, Austria, Poland and the Czech Republic.

The deal would significantly boost P3’s portfolio. Its current asset base comprises 54 warehouses and a land bank with more than 662,500 m2 for potential development.