Global real estate investment manager LaSalle Investment Management (LaSalle) has managed the acquisition of a portfolio of two inner-city logistics parks in Warsaw on behalf of LaSalle E-REGI.
The City Logistics Warsaw Airport and City Logistics Warsaw City North logistics parks are both located within the inner-city area of Warsaw.
In total, the portfolio offers close to 25,000 m2 of rental space, comprising modern class A logistics space, flexible layouts that are adaptable to the needs of small and medium sized occupiers, and top-of-the-range technical specifications. The parks are both fully-let with a well balanced mix of tenants, including an international customs services and customs compliance firm, a logistics operator that works with some of Europe’s largest fashion brands, and the largest supplier of woodworking machinery in Poland.
‘Warsaw is one of Europe’s most popular logistics markets..’
The city is one of Europe’s most popular logistics markets: despite increasing levels of supply, Warsaw’s logistics vacancy rate has trended downwards from above 20% in 2010 to a current level of 6.5%, due to strong demand. These market conditions are in part driven by the city’s location, which benefits from being situated near to the A2 motorway. The strategic transport route links Warsaw and Lodz, the most significant logistics markets in Poland, and connects the country directly to Western Europe through Berlin.
“Logistics has long been a target sector for the LaSalle E-REGI and recent events have only served to strengthen our view of the asset class. Given the rapid expansion of e-commerce – as well as Poland’s developing national road infrastructure, access to low-cost labour and relatively low rents compared to Western Europe – we expect that the portfolio will experience favourable demand fundaments over the coming years, providing long-term secured income for the Fund,” said Uwe Rempis, Managing Director and Fund Manager of LaSalle E-REGI.
LaSalle was advised by Allen & Overy as legal advisor, BNP Paribas as technical advisor and JLL as commercial advisor.