Investment management company EIKA Asset Management has successfully completed the distribution of the EIKA Real Estate Fund (EREF). The EUR 7 million raised will be used to develop the EREF fund – logistics warehouses will be built on the acquired plot of land near Warsaw Modlin Airport and the Warsaw-Gdansk motorway.

SB Alternative Investment Fund III also participated in the distribution of this fund. The fund offers retail investors the opportunity to invest in, and benefit from, the advantages of alternative investments.

Andrius Uždavinys, CEO of EIKA Asset Management:

We would like to thank Artea Bank for the excellent start to our cooperation and for the confidence they have shown in the fund we manage. The participation of this institutional investor not only contributed significantly to the distribution of the EREF fund, but also confirms the quality of the fund and the attractiveness of our projects in the eyes of institutional capital.

According to the agreement signed last year between EIKA Asset Management (EAM), a member of the EIKA Group, and Waimea Holding, a Polish real estate development company, the development of logistics warehouses near Warsaw Modlin Airport and other major transport arteries in Poland is planned in three phases. The first phase will cover 7.54 hectares of land. Initially, an investment of EUR 21 million will create 26,000 square metres of rentable space. It is already known that more than 55% of this area will be occupied by Bricomarché, one of the largest DIY chains in Europe and part of the international group Les Mousquetaires. With more than 40 years of experience and over 500 stores, the chain operates in France, Poland and Portugal. In the local markets, Bricomarché has established itself as a valued supplier of building materials, garden products and household goods. EAM is currently prioritising international tenants with high credit ratings who continue to show interest in the project under development. The development of the second phase, with an investment of around EUR 5 million, will provide a further 11,000 square metres of space.

Uždavinys:

The developed buildings will be used for modern logistics. They will meet the high-quality standards of the international BREEAM certification system and other requirements. The designed usable height of the logistics warehouses is 12 metres. We are already able to offer tenants a competitive rental price for a sustainable building that meets modern standards. And for investors, we have created an opportunity to participate in the development of the real estate that typically offers a higher return on investment. Finally, the development of the facility, together with the already well-developed road and other transport infrastructure, will establish this area of Modlin as a new logistics hub in the north of Warsaw. It is also located about 40 km from the centre of Warsaw and will be easily accessible for employees living in this metropolitan area.

He also notes that the EAM’s partner in this first logistics project in Poland, Waimea Holding, is one of the fastest growing industrial and commercial property development companies in Central and Eastern Europe. The company specialises in creating modern logistics, warehousing, manufacturing and air cargo terminal facilities in Poland. Over the past 15 years, Waimea Holding has developed over 300,000 square metres of logistics warehouses and approximately 2 million square metres of land.

It is estimated that the entire project, located close to Warsaw Modlin Airport and other major Polish transport arteries, will cover more than 23 hectares of land, with approximately 117,000 square metres of rentable space to be built and an investment of more than EUR 70 million.

Uždavinys emphasises that the Poland’s warehouse market is the fifth largest in Europe, with an area of more than 32 million square metres, and continues to grow rapidly. In addition, falling construction costs in this country make it possible to offer competitive rents for new logistics facilities without compromising the expected return on investment.

Uždavinys:

The EREF fund invests in classic commercial real estate in Central and Eastern Europe, with a portfolio that is broadly diversified by product, such as logistics, manufacturing, offices and retail, and by country, including the Baltic States, Poland and Slovakia. The fund’s average annual return after management and performance fees is over 12%. This is a solid result, especially considering the relatively low level of risk.