Europa Launches €150 Million Central European Value-Added Logistics Platform | News

Europa Capital’s value-added fund has launched a new €150m Central European logistics hub with the acquisition of an asset in the Hungarian capital.

Pan-European real estate investment manager Europa Fund VI has partnered with White Star Real Estate to launch the Central European logistics hub.

The platform, which plans to have gross assets of €150 million, has purchased 15 hectares of land in Budapest to develop the Park22 urban logistics park.

Europa said the platform will target “permanent urban logistics and warehousing assets and grassroots development opportunities in strong locations”, which connect the region’s biggest European cities, including Budapest, Vienna and Bratislava.

Jason Oram, Partner and Fund Manager at Europa Capital, said: “Our decision to launch a logistics hub in Central Europe and fund the development of Park22 reflects our view that continued urbanization trends will fuel continued demand for logistics space in Central Europe.

“We continue to see strong occupant interest in our pan-European speculative development pipeline and we look forward to partnering again with White Star Real Estate, with whom we worked on the development of the Małachowski Square office building in Warsaw. , in Poland, which we successfully sold in 2018 on behalf of our investors.

Robert Martin, Partner and Head of Investments at Europa Capital, said: “Park22 presents an opportunity to invest in a high quality project that offers amenities as well as strong transport links.

Martin said Budapest is experiencing a shortage of logistics supply, with a vacancy rate below 4%, and Europa Capital believes Park22 will be an attractive location for third-party logistics players and e-commerce businesses.

“We have been active in the CEE region for several years, and we recently re-entered the Hungarian market with the acquisition of the Akadémia business center in Budapest earlier this year.”

The latest investment brings Europa Capital’s logistics development pipeline to 526,300 m² in countries including the UK, France, Germany, Hungary and Poland.

Krisztián Barabás, development and operations partner at White Star Real Estate, said White Star has been an active player in the property development and management market in Hungary and Central and Eastern Europe for decades.

“We always take into account the latest industry trends and current tenant expectations in our investments and developments and offer real and market-oriented solutions.

“In the case of Park22, we have responded to the accelerated growth of e-commerce by conveniently combining warehousing with office functions, all within the capital city limits, with direct access to the motorway” , said Barabas.

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