Redefine invests €13m in Polish warehouse project
SA’s second-largest listed real estate group, Redefine Properties, is investing in a new-build Polish industrial property in a project worth €28m (R541m).
Redefine has partnered with Madison International Realty and Griffin Real Estate for the project. Redefine’s stake in the project is worth €13m.
Redefine Properties CEO Andrew Konig said 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.
The 50,000m2 manufacturing and warehouse facility will be for Weber-Stephen Products, a privately held American manufacturer of charcoal, gas and electric outdoor grills and related accessories.
The building, which could be expanded if Weber’s growth exceeds expectations, will be the company’s first manufacturing facility in Europe and when complete will employ about 450 people. It will also serve as Weber’s primary distribution operation for Europe, Asia and Africa.
“Our strategy in Poland is centred on 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,” Redefine Europe CEO Pieter Prinsloo said.
Prinsloo, who is a former CEO of SA blue-chip mall owner Hyprop Investments, said “the logistics real estate sector is proving to be more resilient than other real estate classes during the Covid-19 pandemic”.
The facility to be developed in Zabrze follows the development of warehouses and logistic parks located in Ruda Śląska, Sosnowiec and Bielsko-Biała.
Redefine, which also has investments in the UK, SA and Australia, first invested in Poland through mall and office owner EPP in March 2016. It has since invested in distribution warehouses and logistics buildings in Poland, which is Eastern Europe’s largest economy. These investments are held by European Logistics Investment (ELI), of which Redefine owns more than 46.5%.
ELI’s portfolio includes 16 assets with a total gross lettable area of about 480,000m2 and about 120,000m2 under construction.
Correction June 18 2020
This article has been corrected to show that Redefine's investment is €13m and not €18m.
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