Ivory Capital Group is pleased to announce it has successfully placed €10 million injection of capital from a European Family Office, into an asset-backed operational business in Poland which focusses on the built-to-suit logistics sector and already holds real estate assets in excess of 30,000 sq m across key cities. The commitment took the form of an equity bridge facility and was an investment ticket that formed part of a much larger €150 million raise, which is being led by third party advisors in London.
Ivory Capital Group was able to co-ordinate early cross-border discussions and was able to present a compelling and unique opportunity to the family office members of our co-investment deal club; allowing them to gain exposure to the buoyant economy in Poland.
Poland has become a champion of growth in Europe – increasing GDP by almost 150% since 1989, more than any other European country on the continent. This has been driven by an acknowledgement to keep debt levels low and grow their economy in agriculture, coal mining, machine building and textiles, as well as a now booming service sector which makes up over 60% of economic output.
Investors into this project were able to also take advantage of the pro foreign direct investment government policies known as the FIZAN structure – which provides a tax-free option on income and capital gains on operational ownership of assets in the country.
Build-to-suit logistics refers to a warehouse property that is designed for a specific tenant, often global corporations who are increasingly under pressure to expand their operations to meet consumer demand that has been a result of a large uptick in e-commerce and same and next-day delivery services, as well as growth in the FMCG sector and increasing global trade activity.
According to a report by Cushman & Wakefield- occupier demand for modern logistics and industrial space remained healthy in Poland throughout Q3 2018 with 789,000 sq m transacted. Take-up predominantly came from logistics operators (33%), retail chains (17%), e-commerce (15%) and manufacturing (8%). Net take-up comprising new leases and expansions amounted to 2.19 million sq m, accounting for 76% of the leasing volume, while renegotiations made up the remaining 24% or 700,000 sq m.