09 Nov 2011

Tristan Capital Fund Acquires Six Parks of the VGP Czech Logistics Portfolio for €135 Million

Source: Tristan Capital Partners Press Release

London, November 9, 2011 – A fund managed by Tristan Capital Partners has acquired six parks of the Czech logistics portfolio of real estate developer and manager VGP NV, for around €135 million.

The six properties purchased by the Curzon Capital Partners III (CCP III) fund are 100% occupied and are of high quality having all been built within the last four years. There is also the potential to develop an additional 50,000 sqm within the portfolio.  The units are located in the northern, eastern and western Czech regions on major transport routes at Hradec Kralove, Liberec, Mlada Boleslav, Pilsen, Olomouc and Usti.

Ric Lewis, CEO 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.”  

Jan Van Geet, CEO of VGP NV added:  “We are delighted to have entered into this second joint venture with a fund managed by Tristan Capital Partners. The transaction provides us with a solid base to expand our different business lines and allows us to actively look at new development opportunities within the Central European region with a focus on Poland and Germany.” 

In March this year, EPISO, a fund co-advised by Tristan and AEW Europe, entered into a 80:20 joint venture with VGP for the first portion of the logistics portfolio centred around Prague. This latest deal, exclusively with Tristan’s CCPIII fund, is a similar 80:20 arrangement and VGP will continue to be a co-owner and retained as asset manager, responsible for property management, facility management and leasing.

Cameron Spry, Head of Investments at Tristan Capital Partners said: “The limited development of logistics warehouse capacity in Europe during the last few years of difficult economic conditions, has placed a premium on the most modern and best located facilities such as these acquired from VGP. “

Daniel Harris, MD of Investments at Tristan added: “With economic growth in the Central European countries generally more robust than in their Western European counterparts, we expect the Czech logistics portfolio to be extremely attractive to institutional investors.”