The Hines Russia & Poland Fund (HRPF) has purchased two logistics facilities from TMW Pramerica Property Investment.
The properties comprise a total of seven warehouses comprising 753,200 square feet. They are located in Gadki and Grodzisk Mazowiecki, both in close proximity to the A2 motorway, which connects Warsaw with Berlin. The facilities were constructed between 1995 and 2004 as build-to-suits for the Raben group, a large logistics outsourcing firm. Raben remains a tenant in each property.
The facility in Gadki contains five warehouses with a total area of 322,800 square feet. The property in Grodzisk Mazowiecki includes two warehouses containing 430,400 square feet.
Hines Poland will serve as asset manager and property manager. The transaction increases the portfolio of industrial space managed by Hines in Poland to approximately three million square feet.
"We were attracted to these assets due to their key locations and solid tenancy. We think Poland is a good place to invest in the medium and long-term," says Mieczysław Godzisz, senior managing director and country head for Hines in Poland. "In addition to growing our presence in Poland to more than five million square feet, these acquisitions enhance Hines' large global portfolio of industrial facilities."
Simon Shen, HRPF fund manager, says: "This acquisition is an excellent addition to the HRPF portfolio. Not only does it provide attractive risk-adjusted returns, it also helps diversify the portfolio composition."
Jones Lang LaSalle represented the seller in the transaction with legal services provided by Cameron McKenna. Legal services for Hines were provided by Norton Rose.
The Hines Russia & Poland Fund is a Luxembourg-based fund which was formed in 2012 to invest in Russian and Polish real estate. This is the fourth Hines fund with that strategy. Equity has been committed to the fund from a diverse group of financial institutions, sovereign wealth funds, pensions, trusts and other institutional investors from Europe, Asia and the US. The fund targets to invest approximately 80 per cent of its capital in Russia and 20 per cent in Poland.
Hines entered the Poland real estate market in 1996. Among the firm's most notable development projects are Metropolitan in Warsaw, Quattro Towers and Centrum Biurowe Neptun in Gdansk, and Arboretum in Lodz.
Inclusive of this recent acquisition, the firm currently owns or manages 3.2 million square feet in Poland including Sterlinga Business Center in Lodz and a logistics portfolio with properties in Warsaw, Upper Silesia, Sosnowiec and Wroclaw.