Panattoni Europe, Poland's leader in the industrial property market, is developing another BTS value-add acquisition project, this time for K-Flex Polska. It involves acquiring an existing property and redeveloping it through upgrade and expansion. Following the planned changes, the manufacturing facility will feature 16,000 sqm. Work completion is anticipated this August.
Panattoni Europe adds value to existing facilities. Having completed a redevelopment project for Lear Corporation in Legnica, the developer bought and is now starting construction works on an investment near Uniejów. It is a factory run by K-Flex Polska - a branch of the Italian L'ISOLANTE K-FLEX - specialising in the production of acoustic and insulation systems for air-conditioning and refrigeration installations, ventilation, water supply, heating, hot water and building structures. A modern warehouse will be added to the existing 8,000-square-metre facility, doubling its size. At the same time, the entire façade will be renovated and the traffic layout adjacent to the property will be modified. Works will commence at the end of March and are anticipated to end this August, which is barely 5 months after the project is launched.
For K-Flex Polska this transaction is a value-add acquisition , in which Panattoni Europe acquires an industrial facility and undertakes activities aimed at adding value to the property, such as building upgrade and expansion, as well as infrastructure enhancement. Marek Foryński, Head of BTS Group at Panattoni Europe comments: "The investment for K-Flex, same as the previously completed project for Lear, came about because Panattoni intended to broaden its service range to include transactions involving the acquisition of industrial facilities, value-adding process, lease and potentially subsequent sale to investment funds, using our experience to date."
The property is located in Wielenin, directly next to the regional road no 473, 7 km from a junction on the motorway A2 and less than 8 km from the centre of Uniejów.
"Our cooperation with Panattoni proceeded in a professional and diligent manner. To lay down a structure for our collaboration, we discussed all the issues related to the development of the new section of the facility and upgrading the existing section. In our talks, we also focused on how the plant will be functioning during the building process. I wish to emphasise that we discussed in detail all the aspects that enable close, transparent and diligent everyday collaboration in the course of the construction works, so as to avoid any significant disruption of the production process or the continuity of logistics operations. Panattoni Europe suggested solutions that will improve the operational performance of K-Flex and result in considerable cost efficiencies in our supply chain, as well as boost the effectiveness of our production process. The final result of our negotiations meets K-Flex's expectations in terms of the planned investment, its scheduling and terms of cooperation with the developer. I am glad that we have an opportunity to work with Panattoni Europe, whose approach to projects guarantees the security of the transaction, timely completion and a professional execution of all the actions involved" - said Marek Wasiluk, President of the Board, K-Flex.
At present, Panattoni Europe is developing 233,600 sqm of new warehouse space in Poland, including two facilities for Amazon in Poznań and near Wrocław. Since the beginning of this year, the developer has delivered approx. 100,000 sqm of space in projects dedicated to such companies as Castorama Polska (50,000 sqm) and Polaris (33,600 sqm).