EIKA Asset Management (EAM), an investment management company within the EIKA Group, has signed a financing agreement with Bank Pekao S.A., the second largest bank in Poland. The funds received under the agreement will be used to finance the construction of logistics warehouses in Poland by EAM in collaboration with the Polish development company Waimea Holding.

The agreement signed last year between EAM and Waimea Holding covers three phases of development for logistics warehouses near Warsaw’s Modlin Airport and other major transport hubs in Poland. The first phase covers 7.54 hectares of land and 38,000 square metres of leasable space. The investment in the first phase amounts to more than €25 million.

‘Bank Pekao S.A. has demonstrated its confidence in our project. We obtained a building permit, signed a fixed-price general contract, and concluded lease agreements prior to purchasing the land and commencing construction. Bank Pekao S.A. will provide approximately €15 million to finance the construction of warehouses north of Warsaw, near Modlin Airport. The financing will be provided in instalments and, upon completion of construction, it will be converted and become cheaper. We look forward to continuing our cooperation with this bank in the future. We are already well known and visible in the Polish market, having successfully implemented several projects worth tens of millions. Our partner in this project, Waimea Holding, is also a factor in the trust of this bank, as it is one of the fastest growing industrial and commercial real estate development companies in Central and Eastern Europe,” says Paulius Stulgaitis, Head of Investments of the investment management company EIKA Asset Management.

According to the head of EAM, there is a possibility of increasing the financing once the project is complete and all the remaining tenants have been found. ‘We still have the opportunity to build two additional warehouses nearby,’ he said. This is already the second warehouse development project near Warsaw. We see this as a more liquid and attractive market segment, appealing not only to local Polish market players, but also to foreign investors. It is important that we can offer the Polish market a product that meets the high-quality standards of the international BREEAM certification system and the requirements of modern logistics. The success of this project hinges on its highly convenient location in Warsaw, close to Modlin Airport and other major transport routes,” notes P. Stulgaitis.

The entire project, comprising three stages, is estimated to cover more than 23 hectares of land, providing approximately 117,000 square metres of leasable space, with an investment of over €70 million. The Polish warehouse market, which covers more than 32 million square metres, is the fifth largest in Europe and continues to expand rapidly. Declining construction costs in Poland allow us to offer competitive rental prices for new logistics facilities while maintaining the desired return on investment.

“This is our first transaction with the Lithuanian EIKA Real Estate Fund. We are pleased to be the financial partner for the New Modlin Project. We hope that this transaction will mark the beginning of our good and long-term cooperation. We would like to thank you for your trust  and look forward for future cooperation possibilities” says Dieter Lobnig, Managing Director, Investment Banking and Real Estate Department in Bank Pekao SA.

Bank Pekao S.A., founded in 1929, is one of the largest financial institutions in the CEE region and the second largest universal bank in Poland, with assets of PLN 333 billion. The bank has the second largest branch network in the country. It is a leader in corporate banking, serving every second among largest corporates in Poland. Pekao holds a prominent position in the market for asset management, brokerage services, and private banking. The diversified business profile of Bank Pekao is supported by a market-leading balance sheet and risk profile, reflected in the lowest risk costs, strong capital ratios, and resilience to macroeconomic conditions (Pekao is the most resilient bank in Europe, taking first place in the stress tests conducted by the EBA in 2023 among 70 banks). Since 1998, Bank Pekao has been listed on the Warsaw Stock Exchange and has been a member of several local indices (including WIG 20 and WIG) as well as international indices (including MSCI EM, Stoxx Europe 600, and FTSE Developed). Pekao is among top dividend-paying companies listed in Warsaw, with a total shareholder pay-out of above PLN 20bn over the past 10 years.