Europa Capital, the London-based firm which acquired City Point in 2004 for Europa Fund II has sold the asset for €71.6 million ($102 million) to Morley Fund Management’s Central European Industrial Fund (CEIF), managed by Teesland iOG.
City Point is an important asset as it accounts for 22.5 percent of modern warehousing in Warsaw, according to property services firm DTZ. It covers a total of 122,000 square meters of multi-let industrial and warehouse space.
Europa together with its Poland partner Integrated Finance Group and an asset management firm Europa acquired, improved the property through a series of refurbishments and lease restructurings. Capital expenditure was €5 million. The park is more than 95 percent let, with tenants such as Colgate Palmolive and South African Breweries.
Simon Hooper, asset manager for central Europe at Europa Capital, said: “The sale represents the culmination of a 2½ year programme of concentrated asset management.”
Cap rates for warehouse and industrial investments in Poland have fallen progressively over the last 10 years as a result of greater investor demand and the limited availability of properties to purchase. The sale to CEIF is at an initial yield of 6.2 percent. The sale also includes an undeveloped plot of land, which once developed will increase the reversionary yield from 8.2 percent to 9 percent.
Europa Fund II is the fourth vehicle launched by the firm since 1995 and has made 15 investments to date in Poland, Hungary, Poland, the Netherlands, Germany, Greece, Italy, Belgium and the UK. It is also investing its fifth vehicle, Europa Emerging Europe Fund, which raised €100 million on its first closure in March.