Blackstone’s LogiCor Expands European Portfolio with 4.3 MSF in Poland

By Barbra Murray, Contributing Editor

LogiCor, the pan-European logistics real estate arm of investment and advisory firm Blackstone, continues its rapid expansion and Poland is certainly part of the program. The company recently added 4.3 million square feet to its holdings with the acquisition of two premier portfolios in Poland, from Panattoni Europe.

LogiCor purchased the assets in separate transactions during the fourth quarter of 2012, starting with a 2.3 million-square-foot collection of four facilities in Poland’s leading logistics market. The second transaction involved nine new properties accounting for 2 million square feet in various locations across the country.

The international lending community found LogiCor’s pursuit worthy; Poland’s Bank Pekao S.A. supplied the debt financing for the acquisition of the first portfolio and German bank Helaba Landesbank Hessen-Thuringen came through with funds for the second purchase. Poland’s logistics market has the fundamentals that give lenders that coveted warm and fuzzy feeling.

“Serving as a (Central and Eastern Europe) hub, Poland has a favorable location with steadily improving road infrastructure, supporting European supply chain,” Anna Staniszewska, director, consulting and research, with global property services firm DTZ, told Commercial Property Executive. “It is the last stop for warehouse hubs within EU borders, enhancing its positioning as a developed and mature market with a high degree of transparency. It also benefits from a large production base–electronics, automotive, white goods, furniture, food, etcetera–servicing both domestic demand as well as exports.

According to a fourth quarter report by DTZ, despite a challenging economic climate, demand for industrial and logistics space in Poland remained high during most of 2012, with the average vacancy rate having dropped to 10.8 percent at the end of the year.

As for LogiCor and Panattoni, the transfer in ownership of the two logistics portfolios marked the beginning of a long-term relationship, as LogiCor tapped the seller to serve as asset and property manager for the logistics facilities.

Previous LogiCor story covered by CPE: https://www.commercialsearch.com/news/regions/international/blackstone-taps-amb-propertys-barzegar-for-ceo-of-logicor/