Europa Capital’s value add fund and White Star Real Estate mark the ground-breaking of their D2 Park logistics development in the Czech Republic
Europa Capital, the pan-European real estate investment manager, in partnership with White Star Real Estate, announces the ground-breaking, on behalf of its Central European Logistics Platform (the “Platform”), of D2 Park, c. 57,000 sq m logistics development in Hrusky, South Moravia in the Czech Republic], which is c. partially pre-let and located directly on the D2 highway. This follows the acquisition of the scheme on behalf of Europa Capital’s latest value add fund, Europa Fund VI (the “Fund”).
The development will deliver a Grade A warehouse designed to a high-quality specification that can accommodate single or multi-let use, incorporating internal eave heights in excess of 10 metres and outside relaxation zones. International Automotive Components (IAC) Group has agreed to let substantial part of the premises in the project.
The scheme, which is expected to achieve a BREEAM certification rating of ‘excellent’ by utilizing a number of sustainability features such as LED lighting, quality insulation, infrared heating, floor heating and heat pumps. The building will also have a green façade and roof, as well as solar panels, which will aid cooling of the building during the summer months. Construction has already begun, and the building is due to welcome tenants in Q4 2022, with full operations planned to start in the first half of 2023.
The design of D2 will also support alternative transport methods through the provision of cycle racks, carsharing points and electric vehicle charging points, helping to reduce local carbon emissions.
Located on the Brno (CZ) – Bratislava (SK) highway “D2”, the property will offer tenants excellent connectivity, including those looking to serve Austria and Germany. The five principal cities in the region - Vienna, Prague, Brno, Budapest and Bratislava - are situated within a four-hour drivetime. The site is also in close proximity to the Hrusky railway cargo terminal and Breclay’s railway junction is situated 7 km away.
[The Central European Logistics Platform, which has a target GAV of €150 million, targets standing logistics and urban warehousing assets and ground up development opportunities in strong locations, which interconnect Europe’s largest cities in the region including Budapest, Vienna and Bratislava.]
Europa Capital has a long track record of generating attractive returns for investors through investment into the urban light industrial and logistics sector on behalf of its value add and core strategies. In total, Europa Capital has acquired 79 buildings in the sector for a total of €588 million since 2018, including the recent acquisition of Park22 in Budapest, Hungary. Europa Capital’s logistics development pipeline comprises a total of c. 526,300 sq m across the UK, France, Germany, Hungary, Poland and the Czech Republic.
Jason Oram, Partner & Fund Manager, at Europa Capital, commented: “The ground-breaking of the D2 Park development marks an important step in the delivery of this scheme. In line with the rest of Europe, e-commerce demand has been exceptionally strong in the Czech Republic over the last few months and is forecast to increase further, with D2 Park offering potential occupiers modern, sustainable space with excellent connectivity.”
Robert Martin, Partner and Head of Investments at Europa Capital, added: “D2 Park presented an opportunity to invest in a high quality, well located logistics scheme targeted at both logistics companies and production operations. The Czech Republic, including the area of South Moravia, is experiencing a dearth of high-quality logistics supply and with a historically low vacancy rate of below 2%, D2 Park is well placed to meet this demand, evidenced by the recent long-term pre-let to IAC Group.”
Roland Bebcak, Country Partner for Czech Republic and Slovakia at White Star Real Estate, commented: “We are delighted to commence this development with Europa Capital, our long-term investment partner. We strongly believe that D2 Park will fill up the gap in “A class” industrial products in this region.”