Develia has entered into a letter of intent with Hillwood Polska regarding a joint venture (JV) investment involving the construction of a logistics center in Malin near Wrocław, Develia said. Estimated total value of the entire project, with an area of at least 400,000 sq m. m2 GLA, will exceed PLN 1.5 billion.
The letter of intent provides that Develia’s commitment will be set in the JV agreement at 25% and Hillwood’s commitment at 75%. In the basic scenario, the total capital commitment of Develia is estimated at approx. EUR 8.7 million, it will be fully financed from the sale of real estate to JV, it was stated.
“Establishing cooperation with Hillwood Polska to build a logistics park on our land in Malina is another element of Develia’s strategy. We are striving to maximize the value through divestment of the asset that the company bought in 2007 and the letter of intent is the first step in this direction. In addition to the proceeds from the sale of the land, Develia will have a share of the profits from this project, which should be completed by 2029. Together with our partner, we are in talks with local authorities about a change in land use that will enable the project to be implemented. We hope that we will be able to work out an optimal solution, ”said President Andrzej Oślizło, quoted in the press release.
Develia controls a group of special purpose development companies carrying out residential and commercial investments in the largest cities in the country. The company has been listed on the WSE since 2007.