Aberdeen Standard European Logistics Income announces the signing of the purchase agreement for the previously announced acquisition of a modern logistics and distribution property in Lodz, Poland. ASLI will acquire the asset for €28.0 million, representing a net initial yield of 5.6 percent, from logistics and industrial developer Panattoni.
The 31,500 sqm Panattoni Łódź City VIII Logistics Centre consists of 27,888 sqm of warehouse space and 3,612 sqm of office space. The asset is 100 percent leased to six tenants generating a Net Operating Income of €1.59 million and with a Weighted Average Lease Term of 6.7 years.
Tenants at the asset include manufacturers Bilplast, Tabiplast, Mecalit Polska and Alfa Laval, logistics operator EGT Express Polska, retailer KAN, which owns the Polish fashion brand Tatuum, and Compal, one of the world’s largest computer component manufacturers, which signed a new 7-year lease in February 2021 and supplies the DELL factory located less than 1 kilometer from the site.
“The warehouse in Łódź is a very high-quality income-producing asset located at the heart of one of the CEE region’s most strategically important manufacturing and logistics hubs. The asset’s proximity to the nearby Bosch Siemens Campus provides strong long-term attraction to occupiers in this supply chain, while the new international railway station and its direct links to China and other European markets provide unrivaled international connections. The region is in high demand from occupiers and the vacancy rate is one of the lowest in Poland,” Evert Castelein, Fund Manager for ASLI, commented.
“We believe strongly in Poland’s growth prospects and are pleased to be making our third acquisition in the country and to have secured this asset at an attractive yield in a competitive logistics market,” Castelein added.