Fortress REIT has finalised Its first logistics acquisition in Romania following an agreement with Element Industrial and Paval Holding for Eli Park 1, an A-Grade industrial development located in Buftea-Chitila, the newest logistics hub north-west of Bucharest.
The company’s long-term strategy to become a one-third convenience retail and two-thirds logistics business in both South Africa and Europe has helped the REIT to show significant growth during a volatile trading period.
“Romania along with the Central and Eastern Europe (CEE) is one of the most exciting long-term logistics and warehousing investment propositions globally due to the high industrial and consumer growth potential and close access to Western Europe. The market is in the development phase with a lot of opportunities for real estate investment for Fortress. As retail competition in the advanced economies of Western Europe is increasingly determined by the ability to successfully support e-commerce via omnichannel, growth in the logistics real estate sector in CEE will continue for decades to come” commented Fortress REIT CEO, Steven Brown.
“We are selective and intend growing our high-quality warehouse portfolio across CEE in the coming years. Earlier this year we purchased our first logistics assets in Poland – two logistics parks in Bydgoszcz and Stargard. In saying this, we are not strangers to the region, given that we are the largest shareholder in NEPI Rockcastle Plc, active in high-growth retail real estate in CEE.”
Eli Park 1 is a 50 000m2 GLA class A logistics and industrial park, located 15 minutes outside Bucharest and 5 minutes from the ring road, near the connection with the future A0, Bucharest new ring road. This is expected to change the logistics industry for Romania’s Capital City. Eli Park 1 is leased to tenants such as Arctic, Decor Floor, Dentotal, Euro Games Technology Romania, and Mobilier 1. The concepts used in the development of Eli Park 1 allow flexibility in accommodating a wide range of tenant needs, both technical and operational.
Eli Park 1 was developed in joint venture by Element Industrial (founded by Romanian real estate investor Ionut Dumitrescu) and Paval Holding (founded by two Romanian entrepreneurs: Dragos and Adrian Paval). The transaction has been coordinated by a joint team from Element Group, Paval Holding and Fortress REIT Ltd assisted by Dentons, CBRE Romania, CWE and PWC.
“Eli Park 1 was developed to a very high standard, which attracted Fortress Logistics to the property. The transaction confirms Buftea-Chitila as the third logistics hub near Bucharest as well as the developing force of Element Industrial, recognised by a worldwide real estate giant,” said Andrei Jerca, Managing Director of Element Industrial.