POLAND Tritax sells Castorama warehouse in Łódź for EUR 65.5 mln

The purchase price is 15 pct above its most recent valuation at the end of September 2020. It represents a 4.95 pct gross initial yield, compared to the EUR 55 mln purchase cost for Tritax, which reflected a gross initial yield of 5.8 pct. This is Savills IM’s second transaction on behalf of the Vestas European Strategic Allocation Logistics Fund (VESALF I), a pan-European logistics investment fund launched in partnership with Seoul-based Vestas Investment Management in late November 2020. It is among the first ‘blind’ funds raised solely from South Korean institutional investors to invest in European real estate, and targets core/core-plus logistics assets across all key European markets.

These attractive value-add opportunities include asset management initiatives within our existing high-quality portfolio and also the funding of new assets from the attractive pipeline we have access to through our development partners. This development pipeline enables us to acquire new high-quality logistics assets in a more cost-effective manner than competing in the open market, delivering enhanced value to our shareholders.
Nick Preston, a fund manager of Tritax EuroBox

The property was originally acquired by Tritax in April 2019 and included a forward funding pre-lease development opportunity to expand the existing site by a further 52,000 sqm, which was completed in May 2019. Castorama’s lease will continue for another 6.7 years.