We use cookies

Welcome! We use cookies to ensure the proper functioning of the website. We may also use our own cookies and our partners' cookies for analytical and marketing purposes, in particular to match advertising content to your preferences. The use of analytical, marketing and functional cookies requires consent. If you wish to accept all cookies, click "Accept All". If you do not agree to our use of cookies other than essential cookies, please click "Reject All". If you want to adjust your consents for us and our partners, click "Manage cookies". Remember that you can withdraw each of the consents you have given at any time by changing the selected settings.

The use of cookies for the above-mentioned purposes is related to the processing of your personal data. The data controller of your personal data is Panattoni Development Europe sp .z o.o. with its registered seat in Warsaw (00-844), Plac Europejski 1, entered into the register of entrepreneurs of the National Court Register kept by the District Court for the Capital City of Warsaw in Warsaw, XII Commercial Division of the National Court Register, under the KRS number: 0000310363, NIP number: 5252437526. In some cases, our partners may also be data controllers. More information about our and our partners' use of cookies and the processing of your personal data, including your rights, can be found in our Privacy Policy.

Accept all Reject All Set preferences Privacy preferences

Below you can change our and our partners’ cookie settings. Our use of analytical, marketing and functional cookies requires your consent. As part of marketing cookies, we have separated the category of cookies related to the display of advertisements in connection with the use of websites (advertising cookies) and cookies that allow you to reach you with personalized advertising on social networks (social media cookies). Below you may find more information about the individual categories of cookies that we use on the website.

The use of analytical, marketing and functional cookies requires your consent. If you wish to accept all cookies, click "Accept All". If you do not agree to our use of cookies other than essential cookies, please click „Reject all”. To change cookie preferences, move the slider next to the selected category and press "Save settings and close". You have the right to inspect your settings and to change them at any time. Remember that you can withdraw each of your consents at any time by changing the selected settings and clicking "Save settings and close". The withdrawal of individual consents does not affect the lawfulness of the processing carried out before the consent was withdrawn.

The use of cookies involves the processing of your personal data regarding your activity on the website. Detailed information on how we and our partners use cookies and process your data, as well as your rights, can be found in our Privacy Policy.

Strictly Necessary Cookies

Our use of strictly necessary cookies is indispensable for the website to run properly. These files are installed in particular for the purpose of remembering login sessions or filling in forms, as well as for the purposes related to the choice of the privacy options.

_iub_cs-* (expiration: session)
to store cookie consent preferences

_GRECAPTCHA (expiration: session)
Used to filter spam traffic and allow only legitimate visitors to use Termly's services.

SULUSESSID (expiration: session)
This Cookie is used to maintain an anonymised unique identifier for Your session. The session Cookie is not persisted on Your hard disk.

CONSENT (expiration: 2 years)
Used to detect if the visitor has accepted the marketing category in the cookie banner. This cookie is necessary for GDPR-compliance of the website.

YSC (expiration: session)
Registers a unique ID to keep statistics of what videos from YouTube the user has seen.

VISITOR_INFO1_LIVE (expiration: 6 months)
Tries to estimate the users' bandwidth on pages with integrated YouTube videos.

DEVICE_INFO (expiration: 6 months)
Used to collect information about user devices.

Functional cookies

Functional cookies remember and adapt the website to your choices, e.g. language preferences. You can set your browser to block or alert you in case essential and functional cookies appear, however this will result in some parts of the website not working properly.

LOGIN_INFO (expiration: 2 years)
This cookie is used to play YouTube videos embedded on the website.

HSID (expiration: 2 years)
Security cookie to confirm visitor authenticity, prevent fraudulent use of login data and protect user data from unauthorized access.

SIDCC (expiration: 1 year)
Security cookie to confirm visitor authenticity, prevent fraudulent use of login data and protect visitor data from unauthorized access.

SID (expiration: 2 years)
These cookies are set via embedded youtube-videos

Experience enhancement

These trackers help us to provide a personalized user experience by improving the quality of your preference management options, and by enabling the interaction with external networks and platforms.

Analytical cookies

Analytical cookies make it possible to check the number of visits and traffic sources on our website. They help us find out which pages are more and less popular and understand how visitors navigate the page. This allows us to analyze statistics and improve the performance of our website. The information these cookies collect is aggregated thus it is not intended to identify you. If you do not allow these cookies, we will not know when you visited our website.

GA* (expiration: 2 years)
Used to distinguish individual users on your domain

_ga_* (expiration: 2 years)
Used to persist session state.

_gat_* (expiration: 1 min)
Used to throttle request rate. If Google Analytics is deployed via Google Tag Manager, this cookie will be named _dc_gtm_<property- id>.

_gid (expiration: 1 day)
Used to distinguish users.

Advertising cookies

Advertising cookies allow you to adjust the displayed advertising content to your interests, not only on our website, but also outside it. They can be installed by advertising partners through our website. Based on the information from these cookies and activity on other websites, your interest profile is built. Advertising cookies do not directly store your personal data, but identify your web browser and hardware. If you do not allow these cookies, we will still be able to show you advertisements, but they will not be tailored to your preferences

ln_or (expiration: 1 day)
Used to determine if Oribi analytics can be carried out on a specific domain

_gcl_au (expiration: 3 months)
Used to measure ad and campaign performance and conversion rates for Google ads on a site visited

lang (expiration: session)
Used to remember a user's language setting to ensure LinkedIn.com displays in the language selected by the user in their settings.

li_gc (expiration: 6 months)
Used to store consent of guests regarding the use of cookies for non-essential purposes

bcookie (expiration: 2 years)
To store performed actions on the website

AnalyticsSyncHistory (expiration: 30 days)
Used to store information about the time a sync took place with the lms_analytics cookie

UserMatchHistory (expiration: 30 days)
Used for id sync process. It stores the last sync time to avoid repeating the syncing process in a frequent manner

lidc (expiration: 1 day)
To facilitate data center selection

JSESSIONID (expiration: session)
Used for Cross Site Request Forgery (CSRF) protection and URL signature validation

G_ENABLED_IDPS (expiration: 2 years)
Used by Google Single Sign On.

li_alerts (expiration: 1 year)
Used to track impressions of LinkedIn alerts, such as the Cookie Banner and to implement cool off periods for display of alerts

__Secure-3PSIDCC (expiration: 2 years)
Used to create a user profile and display relevant and personalised Google Ads to the user.

__Secure-1PSIDCC (expiration: 1 year)
Cookie required to use website options and services

__Secure-ENID (expiration: 1 year)
To secure digitally signed and encrypted data from the unique Google ID and store the most recent login time that Google uses to identify visitors, prevent fraudulent use of login data and protect visitor data from unauthorized parties. This can also be used for targeting purposes to display relevant and personalized advertising content.

__Secure-3PAPISID (expiration: 2 years)
Builds a profile of website visitor interests to show relevant and personalized ads through retargeting.

__Secure-1PAPISID (expiration: 2 years)
Builds a profile of website visitor interests to show relevant and personalized ads through retargeting.

__Secure-3PSID (expiration: 2 years)
These cookies are used to deliver more relevant ads for you and your interests

__Secure-1PSID (expiration: 2 years)
Cookie required to use website options and services

SAPISID (expiration: 2 years)
Download certain Google Tools and save certain preferences, for example the number of search results per page or activation of the SafeSearch Filter. Adjusts the ads that appear in Google Search.

APISID (expiration: 2 years)
Download certain Google Tools and save certain preferences, for example the number of search results per page or activation of the SafeSearch Filter. Adjusts the ads that appear in Google Search.

SSID (expiration: 2 years)
Download certain Google Tools and save certain preferences, for example the number of search results per page or activation of the SafeSearch Filter. Adjusts the ads that appear in Google Search.

NID (expiration: 6 months)
This cookies is used to collect website statistics and track conversion rates and Google ad personalisation

Save settings Accept all Reject all Show more Show less
  • Home
  • News
  • Meeting your match – investing in logistics
Press releases

Published:

06.02.2018

Meeting your match – investing in logistics

Published:

06.02.2018

Meeting your match – investing in logistics

A special supplement to PERE magazine

INVESTING IN LOGISTICS

Meeting your match
Developers need to offer a wide choice of strategic approaches to meet the requirements of the diverse capital sources now seeking a home in logistics real estate, argues Panattoni Europe CEO, Robert Dobrzycki. Stuart Watson reports

Broad-based demand for logistics realestate investments means a wide variety of investors are looking to find a niche that fits their individual capital requirements in a sector where assets can be hard to access at attractive pricing. Robert Dobrzycki, chief executive of the European arm of international developer Panattoni, briefs PERE on strategies for marrying logistics markets and assets with the capital partners that suit them best.

PERE: What types of capital are currently keen to grow their exposure to logistics real estate?

Robert Dobrzycki: Almost all of them: sovereign wealth, insurance companies, pension funds, private wealth. Logistics has become very popular recently and that popularity is growing mainly because of the retail e-commerce shift that is happening. However, the preferences of those investors for different asset types, risk profiles and geographies form a kind of three-dimensional matrix that can be used to match them with different types of investment.
There are several asset types within our business: e-commerce fulfilment centers, big-box single-let buildings, last-mile logistics hubs, multi-let estates and production and light assembly buildings. Then, of course, you have investors that have core, or value-added, or opportunistic strategies. We are active in the UK, Germany, Poland, Czech Republic, Slovakia and Romania, and we see investors with different geographical focuses, too.

Meanwhile, we are seeing a big drive in Central Europe to create production and e-commerce fulfilment facilities that serve not only the local markets but also western Europe markets. The same big companies are signing the same long leases in Central Europe that they would in Western Europe and using those buildings to serve the West. But because institutional, core, long-term money is showing up from all over the world and creating a supply-demand dynamic that favors the West, there is a pricing gap on either side of the German-Polish border, even for the same product of the same quality with the same tenant serving the same consumer base.
Pricing has become so tight and so aggressive – especially in the UK – that if you buy income-producing assets at a 4.25 percent yield and you can develop speculatively at 5.5-5.75 percent, it is a big difference. If you feel comfortable with development, then that is an easy discount to take. Pricing, especially with the pressure from Asian investors, which are looking for any yield, has got to the point where many European core and core-plus investors are looking into development. For them, it is a way of getting the same product at more efficient pricing. You also have a higher probability of getting your hands on the asset because you are not part of a competitive tender of 10 investors chasing the same building or project.

PERE: How do those different types of investors feel about taking on development and leasing risk?

RD: The simple way to access the market is through competitive bids organized by an investment broker, but it is expensive and it can be time-consuming too, because you never know whether you will be the winning bidder. Developers can offer access to product through their development pipeline. That off- market access is priced differently, and you can be pretty sure you will access the product. But you have to go through the process of working with the developer.
Usually, the developer will take on board the development risk. That is our job. After that, pricing is about letting risk. If there is no letting risk then there is a different return expectation. By accessing product by forwardfunding a long-term let you access it at a better price than by buying an income producing standing investment – if the yield for an income producing asset is 5 percent, by working with a developer you can access the same type of lease length, tenant and covenant at 5.5 percent.

However, if the developer builds speculatively for the investor then the leasing risk is shared and the investor can expect a higher return.
Ultra-core investors are not willing to go into the development phase at all, and core investors usually buy completed buildings or forward-commit. Core-plus and value-add investors are happy to do development and are sometimes happy to take on leasing risk, especially those with value-added risk profiles and those core-plus investors that are specialists in the industrial market. It is not that product with leasing risk represents a big proportion of what they do, but specialists in the asset class are happy at the edges of their portfolios with the higher returns they get from investing in speculative development.

PERE: What capital structures work best, and why?

RD: As a developer, you can work through the relationships that you have or you can capitalize projects building-by- building. The latter is usually tougher and less effi ient, but sometimes developers, including us, do that too. Offering a model that helps different investors access different strategies allows you deeper access to the investment market as well as to a broader base of tenants and product types. By covering as much of the market as possible you can serve a client – which might be a very big company – that wants a 50,000-square -foot production facility,
as well as being able to serve a company like Amazon in multiple locations around Europe for one million or 1.5 million-square-foot fulfilment centers.

For example, at Panattoni we usually take an individual project approach with the large fulfilment centers, while with the smaller deals we try to set up a program or strategy with the investor. It could be an assembly strategy or a development and assembly strategy. We might enter into a joint venture with an investor which would then finance a number of developments until we reach a critical mass of smaller deals. Then, when the joint venture has assembled a large multi-country portfolio it can always exit based on open-market pricing, which generates a nice return for both developer and investor. Sometimes there is a value in scale.

To offer that kind of broad menu of development-led strategies you need very strong, large local teams on the ground. In general, fund management businesses can have smaller teams and a more centralized system. For a development strategy you have to have access to land, to tenants and to the local sub-markets. That can be a challenge because it generates a lot of overheads and the development business is cyclical. Developers always have to watch how much development they do versus the overhead that they have.

PDF 

 

Schronisko_Łubowo_1
Featured news CSR +1
Help tailored to measure: Panattoni BTS and Dekpol Budownictwo join forces for a shelter in Gniezno

Panattoni and Dekpol Budownictwo have once again carried out an initiative in support homeless animals, this time for an animal shelter in Gniezno. The centre has undergone a complete renovation at a cost of around EUR 50,000.

All news
PP_Lublin_IV_1
Featured news Press releases
Panattoni hands over a new centre in the Lublin region. Four tenants occupy Panattoni Park Lublin IV

Panattoni continues to drive market growth in the East of Poland with the handover of another development in the Lublin region. The first tenants are now starting their operations in Panattoni Park Lublin IV.

All news
Panattoni Park Tricity East V_2
Featured news Press releases
Panattoni is close to having completed 700,000 sqm in Pomerania. The developer hands over a building in Panattoni Park Tricity East V

Panattoni continues to grow its portfolio in Pomerania. The company has just handed over the first building in the Panattoni Park Tricity East V complex, near to the Port of Gdańsk. REGESTA is to start operating in the building.

All news
Panattoni_Trilux_1
Featured news Press releases
Cornerstone laid: Panattoni has started construction of the new TRILUX factory in Poland

The first in Central and Eastern Europe factory is being built in Swidnik by the TRILUX Group, a global lighting expert specializing in eco-friendly and technologically advanced B2B solution. The 23,000-square-meter plant, will be built by Panattoni.

All news
NEXT

Panattoni hands over a new centre in the Lublin region. Four tenants occupy Panattoni Park Lublin IV

Panattoni continues to drive market growth in the East of Poland with the handover of another development in the Lublin region. The first tenants are now starting their operations in Panattoni Park Lublin IV.

Panattoni is close to having completed 700,000 sqm in Pomerania. The developer hands over a building in Panattoni Park Tricity East V

Panattoni continues to grow its portfolio in Pomerania. The company has just handed over the first building in the Panattoni Park Tricity East V complex, near to the Port of Gdańsk. REGESTA is to start operating in the building.

Cornerstone laid: Panattoni has started construction of the new TRILUX factory in Poland

The first in Central and Eastern Europe factory is being built in Swidnik by the TRILUX Group, a global lighting expert specializing in eco-friendly and technologically advanced B2B solution. The 23,000-square-meter plant, will be built by Panattoni.

Help tailored to measure: Panattoni BTS and Dekpol Budownictwo join forces for a shelter in Gniezno

Panattoni and Dekpol Budownictwo have once again carried out an initiative in support homeless animals, this time for an animal shelter in Gniezno. The centre has undergone a complete renovation at a cost of around EUR 50,000.

contact-us3

Contact us

We would love to hear from you. Send us an email using the form below or give us a call.

Thank you!
We will get back to you as soon as possible.

Panattoni
Panattoni
Panattoni
Panattoni
Panattoni
Panattoni