Panattoni sells a logistics facility in south-west Warsaw to Encore+ fund

Panattoni Europe, market leader in industrial real estate in Europe, sells another logistics facility. The buyer of Panattoni Park Warsaw West VI is the Encore+ fund. The property acquisition transaction was conducted by LaSalle Investment Management ("LaSalle"), a global real estate management company. In the process of selling the facility, LIM was advised by a team of investment experts from the consulting company JLL.

Panattoni Park Warsaw West VI was completed in 2017 and provides over 43,000 m2 of rental space, with more than 380 parking spaces and 79 loading docks. The site, which has best in class technical specifications, consists of seven units and offers a flexible layout that is adaptable to the needs of medium to large size occupiers. Current tenants include Rhenus Group, the major international logistics services provider, and Nunner, one of Europe’s largest logistics services firms.

The asset is located in Grodzisk Mazowiecki, a suburb of Warsaw that is 35km from both Warsaw City Center and Chopin Airport Warsaw. It is situated near to the A2 motorway, which is a strategic transport route between Warsaw and Lodz, the two most important cities in Poland for logistics, and links Poland directly to Western Europe through Berlin. Panattoni Park is set to benefit from road infrastructure improvements, with the number of lanes on the A2 motorway soon to increase and improvements to internal connectivity into Warsaw also underway.

The sale of Panattoni Park Warsaw West VI is commented on by Robert Dobrzycki, Chief Executive Officer Europe, Panattoni Europe: Transformation of the global supply chain driven by expansion of the e-commerce, development of new services and industries will continue to fuel demand for high quality logistics facilities in Europe. More than 2 Mio sqm of the new logistics space will be made available to investors in Poland this year, which ranks the country as one of the top destination for real estate investors in this sector. Warsaw West VI is one of 30 assets Panattoni is expected to provide to investors this year in Poland in core/core+/value ad strategies.

David Ironside, Fund Manager of Encore+, LaSalle Investment Management, said: “This is another important acquisition for Encore+ that increases its exposure to logistics in Warsaw, the fastest-growing market in Poland, through an asset with excellent specifications and connections. The Warsaw logistics market is experiencing year-on-year decreases in vacancy rates, with the current rate at 4.8 per cent. When combined with expected constraints on development in the area due to increasing construction costs and legislative pressures, this indicates that the asset is set to experience a favourable supply-demand dynamic in the future.”

LaSalle was advised by JLL, Trebbi Poland, EY and Allen & Overy.

The investment strategy for Encore+ focuses on improving assets and creating growth by seeking opportunities to actively manage assets to deliver superior income returns.