Santander Bank Polska S.A. finances Newport Logistics Fund’s the in Zgierz
Newport Logistics Fund, a fund that invests in warehouse real estate, has secured bank financing for an ongoing logistics centre project in Lućmierz near Zgierz. Santander Bank Polska S.A. has supported the development of the two-building complex with a total area of 33,500 sqm.
Newport Logistics Fund is completing the constructions of first of two buildings within the logistics park in Zgierz. Later this quarter, the 6,300 sq m hall will be used by DPD, one of the largest courier companies in Europe. The cross-dock building will be one of the company's largest and most modern sorters in the country. Office and staff facilities will also be available to the tenant. The hall will be equipped with a number of sustainable solutions - including a photovoltaic installation and charging stations for electric cars - and will be BREEAM-certified at the Excellent level. Another warehouse developed as part of the complex will occupy more than 27,000 sq m.
- "The logistics park in Zgierz has already attracted DPD, one of the leaders in the courier industry, confirming the huge potential of this location - close to the A2 motorway and the Emilia junction. We are pleased that the attractiveness is also recognised by Santander Bank Polska S.A., which granted a loan for the realisation of this important investment for the region. The support of financial institutions indicates the continuing very strong position of the industrial property market, which is the speciality of the Newport Logistics Fund. This draws favourable prospects for further development in Poland and Europe," - says Szymon Ostrowski, managing director of the Fund.
Newport Logistics Fund is a Luxembourg-registered fund that operates throughout Europe. It finances, among other things, the development of a 23,400 sq m distribution centre in Almere, near Amsterdam, as well as the construction of a warehouse in the West London region (near London Heathrow), which will occupy 7,500 sq m of space.
Warehouses are bursting at the seams
A very interesting article in Puls Biznesu summarizing the warehouse market in Poland as well as analyzing what 2023 may bring.
- 4% of free warehouse space as of today according to Savills.
- 1-2% vacancy rate is projected in 2023 by Colliers.
- 30% less warehouses according to AXI IMMO Group (y/y) will be delivered in 2023 due to difficulties in obtaining financing.
- Rents increased by 20-30% in 2022 and further growth is expected (rents in Poland are still lower than in Western Europe by about 60%).
Source: Puls Biznesu
Newport Logistics Fund finances a prime West London last-mile logistics development
Newport Logistics Fund announces its newest investment project for a speculative 80,000 sq ft last-mile logistics development in the sought-after West London catchment.
The net zero carbon development is located approximately 4 km west of London Heathrow and close to junction 14 of the M25 on a 3.2-acre brownfield site. It is set for completion in Q2 2024. The facility will benefit from enhanced ESG credentials, including PV roof and be built to BREEAM ‘Excellent’ with an EPC A rating.
“This third project of our fund offers amazing supply chain opportunities with direct access to the London area," says Szymon J. Ostrowski, Managing Director of NEWPORT LOGISTICS FUND. “It is a location with a significant rental growth potential, as space for modern developments in the area is scarce.”
Newport Logistics Fund has recently announced financing a 25,000 sqm project near Amsterdam on top of the 32,000 sqm industrial facility in central Poland.
Newport Logistics Fund has taken patronage of the Polonia Warsaw basketball team. The fund proudly supports a club with nearly 100 years of tradition.
Newport Logistics Fund, a Luxembourg-based fund investing in warehouse real estate in Europe, is supporting Polish sport. The fund has become a patron of Polonia Warszawa - the men's and women's basketball teams. The teams have been in existence since 1925, and in their nearly 100-year history they have, among other achievements, won Polish Championships and for many years constituted the strength of Polish basketball.
Newport Logistics Fund plans to actively support various sports (including golf). The first formal cooperation established by the fund is a partnership with SKK Polonia Warszawa (women's basketball section) and KKS Polonia Warszawa (men's basketball section). The patronage will entail permanent financial support for both teams.
- "The choice of the Warsaw's Polonia basketball sections was not a coincidence. These are teams with great tradition, which are approaching their 100th anniversary. It will be the perfect time to relate to the biggest successes of both teams. It is a great feeling to be able to become a Patron of Polonia Warsaw Basketball, to support the team and its further history!" - says Szymon Ostrowski Managing Director of Newport Logistics Fund. The agreement between the company and the club will come into effect at the beginning of February this year.
"We would like to proudly celebrate the centenary together with a large number of patrons. That is why we are encouraging institutions and individuals to choose patronage today - a conventional form of sport support that simultaneously fulfils modern CSR and ESG objectives. We are delighted that the Newport Logistics Fund is joining our team. We hope that this will be a fruitful and long-term cooperation," says Łukasz Tusiński, president of both basketball sections of Polonia Warszawa.
Currently, the female team - SKK Polonia Warszawa - competes at the highest level of the competition in Poland, where they managed to reach 7th place last year. The men's section - KKS Polonia Warszawa - finished last season without defeat and was promoted to the 1st league. Polonia Warsaw Sports Club is one of the traditional symbols of Warsaw, Mazovia and Polish sport. It was founded in 1911, with the basketball section established 14 years later. Such Polish sportsmen and sportswomen as Irena Szewińska, Władysław Komar, Waldemar Marszałek and Władysław Szczepaniak come from Polonia.
2023 Newport Business Mixer
It was a pleasure to host business mixer for friends of our fund. Thank you for coming and witnessing our progress!
Global economic growth forecast by International Monetary Fund
Very interesting 2023 forecast by International Monetary Fund regarding global growth. Good news is that most countries will avoid a recession this year.
Our summary below:
- Global growth is projected to 2.9% in 2023 and further rise to 3.1% in 2024 (forecast for 2023 is +0.2% than predicted in Oct 2022).
- Key elements for better forecast are due to China reopening as it scraped zero-Covid policy and gas prices fall due to warm winter.
- Global inflation is expected to fall from 8.8% in 2022 to 6.6% in 2023 and further 4.3% in 2024. Inflation still will be above pre-covid (2017–19) levels of 3.5%.
- UK is expected to be the only leading economy to shrink in 2023, with GDP forecast of -0.6% and further rise to 0.9% in 2024.
Source: International Monetary Fund
Blackstone about 4Q and their real estate portlofio
Very interesting insights from Blackstone on their 4Q earnings and their real estate portlofio (2:38+).
Currently logistics counts for 40% of their global portfolio. Why?
- 1-3% vacancy rates globally,
- 10-20% rent increase,
- demant and supply are not matching.
Source: CNBC
Newport Logistics Fund finances the construction of a distribution centre near Amsterdam
Newport Logistics Fund, a Luxembourg fund investing in warehouse real estate, will finance the development of a distribution centre at the Stichtsekant business park in Almere near Amsterdam. Construction of the 23,400 sqm development is scheduled for completion in early 2024.
Newport Logistics Fund, a fund investing in warehouse real estate, will finance the development of a distribution centre at the Stichtsekant business park in Almere near Amsterdam. Construction of the 23,400 sqm development is scheduled for completion in early 2024.
The distribution centre will be located directly adjacent to the A27 motorway, just 30 km from Amsterdam and Utrecht. Schiphol airport and the port of Amsterdam are reachable in approximately 30 minutes. Around twelve million people live within an hour's drive of the business park.
"We are extremely excited that our Fund's next project is located in the best area in the Netherlands, close to Amsterdam. The second project in our portfolio provides investors with diversification in terms of assets and geographical location," - said Szymon Ostrowski Managing Director of Newport Logistics Fund.
The Almere Distribution Centre will consist of 19,600 sqm of warehouse space, more than 2,100 sqm of office space and a mezzanine floor occupying nearly 1,600 sqm. The facility will have 22 loading docks and five overhead doors. There will also be 251 parking spaces. The development will be suitable for one larger tenant or for several smaller ones within segments of at least 3,700 sqm.
Newport is betting on green. The new distribution centre will meet strict sustainable building requirements and will be certified in accordance with the BREEAM standard of Very Good. The building will not use natural gas and the roof will be entirely covered with PV panels.
International renown. Business Park Stichtsenkant has a strong business presence - leading companies from various sectors chose it as a base for logistics operations, including Volvo, Lidl, or PostNbout thirty minutes away by car is the port of Flevokust, with the container terminal CTU Flevokust. It offers the possibility of transporting goods by water, for example to the port of Rotterdam.
Projects on a variety of latitudes. The Almere distribution centre is another European realisation financed by Newport Logistics Fund. In the second half of 2022, construction began on an industrial facility in Poland, near Łódź, with a target area of 33,000 sqm. In the first of the halls, DPD will occupy 6,300 sqm, and the cross-dock building will house one of the company's most modern sorters in the country.
Investors want warehouses!
A very interesting article summarizing trends in this market as well as the position of Poland.
Below is our summary:
- Logistics real estate, warehouses as well as urban logistics facilities are the most popular among investors (EUR 500 billion + AUM).
- 90% of respondents indicate that an element of their investment strategy is based on energy and ecological efficiency (BREEAM or LEED certification).
- Poland is a very artactive market due to the fact that the costs of rent, energy and labor are the lowest in Europe (34% lower than in Czech Republic and 62% lower than in Germany).
- 25%, this is the average increase in rents in 2022 in Poland. From EUR 3.40 to EUR 5.50/sqm/month for big-box schemes and from EUR 5.00 to EUR 6.50/sqm/month for City Logistics/SBU projects.
Source: log24.pl
2022 CEE-6 Highlights in the Real Estate
We recommend reading interesting report by Colliers about the 2022 CEE-6 Highlights in the Real Estate. Our summary with focus on industrial sector below:
- 2022 was another good year on the industrial market in terms of demand levels.
- Very low vacancy rate in most CEE counties at <5% (Czech >1%, Poland 3%).
- Rents on industrial markets of all CEE countries have increased, but remain competitive with Western European markets (in Poland base rents went up 20-40% and effective rents 20-50%).
- The war in Ukraine has affected the economic situation of all countries.
- ESG moves from “nice to have” to market standard in all RE market segments as well as tenant sectors.
Source: Colliers
