Select property fund sells four schemes in Poland for €67 million
Standard Life Investments and its European logistical development partner, Panattoni Development Company, today announced the sale of four projects in Poland, totalling 128,000 m2 of logistical space, on behalf of the Select Property Fund.
The schemes were sold to European Property Investors Special Opportunities, L.P. (EPISO), a fund co-advised by AEW Europe and Tristan Capital Partners, for a combined transaction value of €67m.
Developed in 2007-2008 in a joint venture with Panattoni, the four schemes are located in Lodz, Pruszkow and Poznan in Poland and consist of warehouse facilities fully let to a mix of 14 tenants with an average unexpired lease term of 3.9 years.
Andrew Jackson, Fund Manager - Select Property Fund, Standard Life Investments, said: "During 2006 our research-led strategy for our global property fund, the Select Property Fund, indicated a move out of the UK into the Polish property market. This decision has been vindicated with this portfolio of properties generating positive returns for the fund over the period held. This compares very favourably to UK commercial property returns which have fallen 20% since 2007.
"The quality of developments achieved with our joint venture partner, Panattoni, and the resilience of the Polish economy have helped the Polish logistical market weather the downturn seen in most other countries. Going forward, the Fund will use the proceeds to acquire further direct property both strategically, such as in Brazil, but also opportunistically, in the UK and Europe, as further value emerges."
Robert Dobrzycki, Manager of Panattoni Poland, said: "The Polish real estate market is recently becoming an ever more interesting place for foreign international real estate investment funds. Together with Standard Life Investments we have delivered a stable portfolio of strategically located schemes despite the recent tough times. We believe in the strength of our investments and are pleased that the EPISO fund has acknowledged their value. We are also proud that AEW Europe/Tristan have selected Panattoni Europe as their property and asset manager based on our quality of service and reputation within the Polish logistics market."
The first of its kind in the marketplace, the Select Property Fund offers both institutional and retail investors access to UK and international property markets in North America, Europe and across Asia Pacific. The fund accesses commercial property markets via direct investment, unquoted specialist property products and stock exchange listed property vehicles globally.