Tristan invests €135m in Czech logistics

In its second transaction with development firm VDP NV, the Europe-focused firm has increased its exposure to the Czech Republic using capital from its Curzon Capital Partners III fund.

Tristan Capital Partners, the Europe-focused private equity real estate firm, has bought a majority stake in a six-strong portfolio of logistics parks in the Czech Republic for approximately €135 million.

The firm announced today it had acquired the properties from developer VDP NV on behalf of the Curzon Capital Partners III fund (CCP III), a core-plus/value-added vehicle currently still in fundraising mode.

It was the second investment in properties developed by VDP and the capital generated by the sale is expected to enable the developer to continue expanding its development pipeline. In March, another fund called EPISO, advised by Tristan alongside AEW Europe, entered into an 80:20 partnership for a portfolio of assets situated around Prague. This second deal is structured similarly.

As of October, the fund had attracted more than €300 million from investors at the second closing stage and is expected to hold a final closing bringing the total equity raised for the vehicle to about €500 million, later this month.

The purchase of the Czech Republic of the six warehouses, which are 100 percent occupied, brings with it potential rights to develop a further 50,000 square metres within the portfolio. The assets are located in the northern, eastern and western regions of the country and are near major transport hubs at Hradec Kralove, Liberec, Mlada Boleslav, Pilsen, Olomouc and Usti.

Ric Lewis, chief executive officer of Tristan Capital Partners said: “This is the latest in a solid pipeline of deals we have lined up for the CCP III value added/core plus strategy. We are already investing for the fund even though we are still raising additional capital for this strategy. The transaction is a result of the strong and fruitful relationship that we have established with Jan Van Geet and his team at VGP.”