Cromwell Property Group and Linkcity, member of Bouygues Construction, have formed a partnership, which already identified more than a quarter of its assets. With this move, they plan to invest in the rollout of a portfolio of logistics and light industrial assets in Central and Eastern Europe that will eventually have a gross asset value of approximately €500 million. Bouygues Construction’s affiliate companies will be responsible for the project development, design and construction of the portfolio, while Cromwell Property Group will source the funding and asset-manage the projects upon their completion.
The first asset is an 8,000 sqm logistics building. Located just over 100 kilometres east of Prague, in the Czech Republic, it is already 88% pre-let and due to complete in Q3 2018. The larger second and third assets, covering a combined 180,000 sqm, are currently also seeking pre-let commitments.
Bouygues affiliate companies, Linkcity and VCES, will be responsible for the project development, design and construction of the portfolio, while Cromwell will source investment funding and subsequently provide asset management services upon the completion of each project.
“We are delighted to partner with an experienced developer of the calibre of Bouygues to create a portfolio of premium logistics and light industrial assets that are already in demand from transport and ecommerce related occupiers,” Cromwell’s Managing Director for Europe, Mark McLaughlin, said. “We have identified a significant investment opportunity in Central and Eastern Europe, where we believe there will be a range of
future economic, infrastructure and other growth opportunities,” Simon Garing, Cromwell Chief Capital Officer, commented. “This partnership is another step forward for our funds management business. It is also an endorsement of our ability to offer international capital partners with investment opportunities in key sectors across Europe,” he added.
“This is a great opportunity to combine our development expertise in international, Czech, and Slovak markets with a strong investor partner who has an excellent track record of managing assets across Europe. Link Hradec Kralove is just the beginning with further projects located in close proximity to the main cities in the Czech Republic, Slovakia and Poland,” David Labardin, CEO of Linkcity Czech Republic a.s., commented.