P3 buys Czech logistics portfolio for €523 mln

Tristan Capital Partners and its joint venture partner VGP have carried out the long-awaited sale of the Bora Bora portfolio of Czech logistics assets to P3 for €523 mln.

The sale is the biggest single deal for Tristan since the firm was established by CEO Ric Lewis just five years ago and the fourth-largest logistics portfolio transaction in Europe since the start of 2012, when activity in the market began to gather pace, according to Real Capital Analytics (RCA) data.

Tristan's CCP III and EPISO funds are selling 58 modern logistics buildings with a total of 627,000 m2 of lettable space that were acquired in a joint venture with VGP in 2011. The transaction includes 36 hectares of development land, primarily around Prague. The sale to European logistics specialist P3 is scheduled for completion in the fourth quarter of 2014, subject to the finalisation of contract terms and regulatory approval.

The Tristan funds were advised by JLL, while CBRE advised P3.

Rui Tereso, head of portfolio & asset management at Tristan, said: 'This exit follows closely on the heels of a €472 mln sale we did in the same sector of assets in Germany, Poland and France to Segro a few months ago. It means Tristan has sold over €1 bn in logistics assets in 2014 alone, representing the culmination of a structural market investment opportunity our research first identified 10 years ago.'

The portfolio of existing assets includes the logistics park (Horni Poèernice) in Prague totalling 390,000 m2 of lettable area and 26 hectares of land. The remaining assets are in key strategic hubs including Plzen, Liberec, Hradec Kralove and Olomouc and total 237,000 m2 of lettable space and 10 hectares of land.

These properties, which have all been built within the last seven years, are occupied by tenants such as MD Logistika, Ontex CZ, Knorr Bremse, Activa Spol and Grupo Antolin Bohemia.

Jean-Philippe Blangy, executive director of portfolio and asset management at Tristan, added: 'Working with our local partner VGP, we have successfully repositioned the portfolios to maximise occupancy. We have maintained an average lease term in excess of four years and added further value through the development of additional grade A space.'

CCP III raised a total of €420 mln from institutional investors by February 2012, while EPISO raised around €800 mln with a final close in May 2008.