Newport Logistics Fund II is financing the development of Panattoni Park Ennshafen in Upper Austria.
Newport Logistics Fund, which invests in full-cycle industrial real estate development in Europe, is developing its second fund. With its Newport Logistics Fund II, the company is looking to raise €100 million to invest in the western part of the continent. The first project thus financed will be Panattoni Park Ennshafen in Upper Austria, with construction commencing in 2024.
The 42,000-sqm development will be built in a very attractive location next to the city of Linz in the Ennshafen business park. Owing to its access to inland waterways via the Rhine-Main-Danube waterway and to the rail network via a container terminal, as well as its proximity to the B1 national road and the A1 West motorway, the location has excellent connections to European economic centres.
The logistics and industrial space being developed within the park will occupy 42,000 sqm, of which 3,000 sqm will be made up by offices and 3,000 sqm by mezzanines. In addition, companies will be able to rent even small modules of up to 3,000 sqm, therefore creating an excellent development opportunity for small and medium-sized enterprises that operate in the region.
- “Our experience to date confirms that Panattoni projects are worth investing in. It is a European market leader that carefully selects the locations of its parks in terms of business potential, and Upper Austria is a highly reputed region in this regard. Meanwhile, the high level of sustainable construction of the Ennshafen Park will allow companies to meet their climate goals,” comments Szymon Ostrowski, Managing Director of the Fund.
The project will receive DGNB certification at a very high Gold level. Extensive energy-saving measures will be implemented, including photovoltaic installations on the roofs of the facilities, as well as the use of facilities such as municipal heating systems or heat pumps. Green areas will be created on the site, and employees will be able to use bicycle infrastructure, electric vehicle charging stations and public transport.
Newport Logistics Fund II is yet another company’s fund. The first fund raised €50 million in just 10 months from investors in Western Europe, the US and the UAE. The funds have already been fully invested in three projects, providing investors with a diversified portfolio of assets.
The first project financed was a distribution centre in Zgierz, in central Poland, next to the A2 motorway, which connects cities such as Warsaw and Berlin. The investment includes two buildings with a total area of 33,500 sqm. The first has already been built and fully rented by logistics company DPD. The second project, in Almere near Amsterdam, will cover 23,400 sqm. The latest development is right next to Heathrow Airport in London and it will cover 7,500 sqm.
- “The great success of the previous Fund makes us optimistic in the context of Newport Logistics Fund II, and the commencement of Panattoni Park confirms that we are not slowing down, especially since we are already planning our next investment in France,” Szymon Ostrowski concludes.
Semiconductors & Logistics – Report by Savills!
Savills' Spotlight report reveals Europe must double semiconductor production to achieve 20% global output by 2030 under the EU Chips Act. €43B EU investment could create 10.8M sq m warehouse demand in 7 years.
Pandemic disruptions led to supply chain challenges, surging demand, and geopolitical complexities. China rose to 32%, US dropped to 12%. Andrew Blennerhassett from Savills sees AI, EVs, and cloud driving demand, potentially boosting logistics growth by 10.8M sq m by 2030.
Manufacturing links to industrial demand. EU's 2021 manufacturing revenues at €5.2T, semiconductors at €53.8B (1% of total). Growth may raise this to 4.2% by 2030, fueling logistics.
Savills envisions 1.6M jobs and 4.2M sq m logistics demand from EU's semiconductor push. Opportunities for Ireland, Germany, Italy, Poland, and Spain.
Marcus de Minckwitz, Savills, notes semiconductor interest grows, benefiting European markets. Diversity and onshoring, along with e-commerce, promise dynamic years ahead.
https://lnkd.in/eExVW8Yw
https://www.savills.co.uk/insight-and-opinion/savills-news/350029/growth-of-semiconductor-production-across-eu-set-to-generate-10.8-sq-m-of-warehouse-demand-by-2030
Newport Logistics Fund became the Supporting Sponsor of the PGA Polska Karolinka Open
As great golf enthusiasts, we are delighted to inform you about our partnership with PGA of Poland! As part of the cooperation, we became the Supporting Sponsor of the PGA Polska Karolinka Open golf tournament. The competition took place on July 10 on the Karolinka Golf Park golf course in Kamień Śląski, famous for its unique landscapes, unique architecture and guarantee of sports challenges.
Congratulations to the winners and all participants and wish them further success!
Records on the warehouse market in Poland. A business that makes money.
We invite you to read Forbes Poland's interview with Szymon J. Ostrowski, who speaks about the condition of the logistics real estate market.
Poland has seen a record amount of new warehouse space in 2022, but the warehouse market is currently facing challenges. Despite a shortage of space, a slowdown in investment and rising construction costs, demand for warehouses remains strong. Changes in e-commerce and supply chains are driving the market, while nearshoring and manufacturing are the main factors driving demand for warehouses.
In addition, the logistics industry needs to take into account sustainability aspects such as ESG, which are becoming increasingly important for investors and tenants. Despite the challenges, investment in warehouses in Poland remains attractive, with players from the US and Central Europe being the main investors.
The entire interview is available at the link: https://lnkd.in/ej43eAAK
Our fund has become an official Friend of the Polish National Ballet
We are very pleased to announce that Newport Logistics Fund has acquired an official title of "Friend of the Polish National Ballet"!
We are delighted to support this amazing institution that contributes to the development of the art of ballet in Poland and promotes our cultural heritage around the world. The Polish National Ballet is known for its artistic excellence, beautiful choreography and extraordinary performances. We are proud to support their mission and passion. We believe that together we can create unique artistic experiences for all dance lovers.
We look forward to our partnership with the Polish National Ballet and can't wait to see the results!
Banquet Newport Logistics Fund
The Newport Logistics Fund banquet is behind us! Yesterday we had the pleasure of hosting our investors and friends of our fund during a banquet at the Grand Theater National Opera!
During the meeting, we had the opportunity to see a performance by the Polish National Ballet as well as listen to a very inspiring and interesting conversation with Piotr Krupa from KRUK S.A.. The Managing Director of the Fund, Szymon Ostrowski, also talked about the progress of Fund I, as well as plans and current activities under Fund II.
We would like to thank all our investors and future investors for being with us yesterday.
Summary of Q1 2023 in the warehouse market
Summary of Q1 2023 in the warehouse market:
✅ €401 mln were spent by investors in Poland to buy new warehouses (62% of the total investment in the commercial real estate sector)
✅ 12 properties were sold (9 of them on the primary market and 8 properties are located in the western part of the country)
✅ USA and CEE are the areas where the most active investors come from.
Source: Puls Biznesu
Polish warehouse market. Why it's better to invest in warehouses than in apartments
We recommend the interview that Szymon J. Ostrowski gave to Wyborcza.biz! You will learn more about the logistics and warehouse market, as well as why it is worth investing in warehouses.
Source: Wyborcza.biz
Influence of ESG on investments
ESG is a real catalyst for change, not a marketing gimmick.
The importance of ESG (Environmental, Social, and Governance) for business around the world is growing rapidly. The EU has introduced a number of regulations, and the Sustainable Finance Disclosure Regulation (#SFDR) is particularly important for the financial services sector, which requires financial companies to disclose information on sustainable development. What does this have to do with the real estate market? Find out in the article Szymon J. Ostrowski published in Obiekty magazine: https://lnkd.in/gDrDtEhG
Polish Logistics Going Places: an Interview with Szymon Ostrowski in Poland Weekly
Sylwia Ziemacka from Poland Weekly magazine talked to Szymon Ostrowski, Managing Director at Newport Logistics Fund.
2022 was record breaking for warehouse real estate in Poland, with 4.4 million sq m completed, the best result in the sector’s history. This means 42 proc. more facilities built compared to 2021. 52 proc. of space was rented by logistics companies, 15 proc. by commercial networks and 10 proc. e-commerce and production. It seems that the demand side is still strong as companies want to make their supply chains more efficient. What does this all mean for Poland?
We met recently at Mipim in Cannes. I think that’s the best place to gain insights from around Europe. Where are we now as Europe in terms of the logistics market and what are the forecasts?
Generally, logistics are doing very well in Poland and also across Europe. There is high demand for logistics space, which together with insufficient supply, creates opportunity for developers. Logistics is a very interesting part of real estate because this is something that you can build very quickly compared to other assets. In the case of warehouses, we are talking about six to nine months. Logistics, similar to other real estate assets, provides a stable fixed income for investors, who are the final owners that buy and hold the assets. However, even more importantly, logistics is doing very well in these challenging times. On the one hand the current situation is demanding due to geopolitics, high inflation and interest rates. But on the other hand, there are also opportunities for logistics and warehouses, because among other things the war has created supply chain issues that, in turn, have driven demand for more warehouse space. Also worth keeping in mind is the situation with COVID. I know we claim to live in a world where COVID is gone, but the consequences are still with us.The Zero-Covid policy in China was just recently terminated, but supply chains are not back to the previous stage and they won’t get back there soon.
Then we need to mention the biggest contributor to this growth and why logistics and warehouses are so interesting, and that is e-commerce, which grew significantly during COVID and is still growing, although slower. And as we have changed the way we do shopping, the e-commerce part will stay with us forever. Although it’s not growing as fast as it was during the pandemic, it is still growing 15-18 proc. on an annual basis. And this requires more modern warehouses.
Can we come back to the disruption in the supply chain and nearshoring trend that has had an impact on our market? Or is expected to have an impact.
For many years we were discussing this topic, but we didn’t see any projects. Now we can actually see that with COVID, which really hit supply chain lines, and the war, which affected it even more, the trend of nearshoring is becoming real. And it’s not about closing factories in China, but about building a new factory closer to the market where you are selling the product. Poland, Central Eastern Europe, or generally Europe is an attractive place. It might be slightly more expensive in terms of workforce, but on the other hand, it’s much closer to the customer and you don’t have this element of uncertainty and issue of transport, logistics and the supply chain.
Being closer to almost 450 million customers is something that is important. In this regard it’s not only about Poland or CEE but the whole of Europe?
The statistics show quite a big speed up in the investment in Europe and Poland is a dark horse in this race. At the Newport Logistics Fund, we are looking for investments across the whole of Europe. We are a Luxembourg-based fund focusing only on the full investment cycle related to development of warehouses in Europe.
In the nutshell we are buying land with permits, building the warehouses, leasing them out, and then finally selling to a final institutional investor. In a record-breaking time of 10 months, we have raised over €50 million and also invested all the proceeds into three projects located in: London, Amsterdam and Zgierz. The first project is in central Poland, the second in Amsterdam’s Almere district and the third is in London, close to Heathrow Airport. Currently, we are working on a second fund, which will be €100 million and we will be looking at assets in Western Europe with a focus on France, Spain, Germany, UK and Belgium, among others. It is important to understand that investors are also looking at diversification and we can provide them not only geographical diversification, but also asset diversification. That’s why telling an investor you will have four assets in one country compared to having four assets across four countries makes a difference from an investment point of view. It’s a very interesting and wise way to do business because spreading risk is always good, as diversification is important.
But if you also add rental levels, construction costs and so on, what’s the balance when looking at Poland versus Western Europe?
I think we can say that in Poland and CEE, land is very cheap compared to Western Europe. Rents in Poland are going up, last year by 20-30 proc., but they are still 60 proc. lower than in Western Europe. On the other hand, supply and demand are more or less the same. So there is a huge need for modern warehouses in Western Europe. It is also very important to remember that a warehouse built 15-20 years ago doesn’t fit the expectations of many clients or tenants.
You mean ESG criteria?
Yes, 20 years ago nobody knew what ESG was. Today it’s different. Even in terms of all the technical elements – 20 years ago they did not exist. That’s why we are also looking for brownfield projects. Actually in our project in London, we acquired a piece of land with two warehouses, which we are taking down and building
a modern warehouse. Why are we doing it? Because we can get even more rent from it. Because it will be a modern warehouse.
The pressure for ESG is growing – is it coming mainly from the investors’ side or also the tenants’ side?
Without a doubt. Something that at the beginning was more of a marketing idea, became a reality. The European Union made a huge effort to launch its taxonomy and put ESG high up the agenda. Today it is also almost impossible to get bank financing or insurance for a project that is not in line with ESG.
So both perspectives are important, including requirements from tenants who also have their own shareholders. And their shareholders are asking about ESG, how green you are. The same with investors. On top of this, I think it’s important to understand that ESG is not a problem. It’s a solution by paying lower bills and contributing to the road to net zero. Energy or water efficiency, etc. is an important element, especially today with extremely high energy prices. Being energy efficient, having solar panels, having water containers, having all those things in place, makes sense because at the end of the day, the bill is lower. So, in a way, the whole ecosystem is expecting it. It’s much more developed in Western Europe, but is already coming very strongly to Poland. It’s a good thing to do to help the planet and, of course, there is a business effect as well. You will be more successful in renting a high standard warehouse. So it means it will be easier to sell, which means it will be easier and quicker to give back money to investors. And that’s the whole idea.
What are your forecasts for Poland?
For many years, Poland has been and will be a very good place for investing in logistics, in warehouses, etc, because of its proximity to Western Europe, its very good highways and infrastructure, etc.. Also when the war started, there was a huge trend of friendshoring. A lot of companies from Ukraine have moved their operations to Poland. Also the flow of supply, including military, which is going through Poland, has really boosted the market. A growth in terms of logistics and warehouses, especially in the eastern part of Poland has been noticed. I don’t want to say that before the eastern part of Poland was neglected, but for many years it was not really developing as there was no real need there. Because at the end of the day, we need to remember that everybody is building where there is the demand and demand creates supply. But now due to the war and future reconstruction of Ukraine, the eastern part of Poland is gaining momentum in logistics and warehouses. That’s without a doubt. Once the war ends, and we all wish it will end as soon as possible, this area will flourish because of the need to get money, equipment, etc. in to rebuild Ukraine.
