Redefine’s European logistics platform set to expand

Redefine CEO Andrew Konig.
Andrew Konig, CEO of Redefine Properties.

Redefine Properties, equity partners, Madison International Realty, Griffin Real Estate in European Logistics Investment BC and, in joint venture with its strategic development partner Panattoini Europe, will start construction on a 50 000 square meter build-to-suit manufacturing and warehouse facility for Weber-Stephen Products in Zabrze within the Upper Silesian metropolitan area in Poland.

Weber is a privately held US manufacturer of charcoal, gas and electric outdoor grills and related accessories.

The building has been planned with over 5000 square meters dedicated to office space. The site is provisioned for an additional 30 000 square meters if Weber’s growth exceeds expectations.

The project will be Weber’s first manufacturing facility in Europe. On completion it will employ approximately 450 people. Construction will begin in August 2020 and it will be ready for completion during the second half of 2021. The BTS facility will serve as Weber’s primary distribution operation for Europe, Asia, and Africa.

Zabrze’s proximity to three international airports (Katowice, Krakow and Ostrava) with easy access to the A1 motorway (Gdańsk – Łódź – Czechia – Austria) and, the intersection of the A1 and A4 (Germany – Wrocław – Krakow) serves Weber’s interests.

The logistics and real estate sector are proving to be more resilient than other real estate classes during Covid-19. According to Savills, the pandemic has had no significant impact on occupier demand in Poland in the first quarter of the year. The leasing volumes during Q1 2020 have been on par with the same period last year (1.1 million square meters) with a notable increase in demand for temporary space.

Poland’s total warehouse and industrial stock reached 19.0 million square meters at the end of March 2020 with the larger markets being Warsaw (4.4 million square meters), Upper Silesia (3.2 million square meters) and, Central Poland (3.1 million square meters).

CEO of Redefine Properties, Andrew Konig says the coronavirus pandemic is expected to intensify the demand for warehousing as supply chains are restructured and to meet the growth in online spending. The growth in e-commerce is benefiting logistics especially the development of ‘last mile’ delivery facilities.

Our strategy in Poland is centred around creating a leading logistics platform and Zabrze located in Upper Silesia, one of the most attractive logistics locations in the country was a natural choice for Weber”, says Pieter Prinsloo, CEO of Redefine Europe.

The sustained investments in improving road infrastructure has enabled easy access to other parts of the country, as well as to the rest of Europe making Upper Silesia a popular region among international companies looking for high-quality warehouses in good locations. The facility to be developed in Zabrze is our next investment in the region, following the development of the warehouses and logistic parks located in Ruda Śląska, Sosnowiec and Bielsko-Biała.