Europa Capital, acting in partnership with White Star Real Estate, has launched the Central European Logistics Platform on behalf of its latest value add fund, Europa Fund VI (the “Fund”), acquiring a prime 15-hectare site on which it will fund the development of park22, an urban logistics park in Budapest, Hungary. The platform, which has a target GAV of €150m, will target standing logistics and urban warehousing assets and ground-up development opportunities in strong locations, which interconnect Europe’s largest cities in the region including Budapest, Vienna and Bratislava.
The phased development of park22 will deliver a total of 61,400m² of Grade A logistics space across six units ranging from 6,452m² to 15,081m², as well as office space, car parking and an extensive landscaped green area. Amenities will also include 24-hour security, access control and bicycle storage. The scheme, which will target a BREEAM ‘very good’ rating, will feature LED lighting, energy use monitoring and EV charging stations. The building will also be constructed using timber and timber-based materials, whilst the surrounding green area will support biodiversity through the planting of new trees and the installation of bird and bat houses.
park22 will offer occupiers excellent connectivity via road, railway, bus and cycle paths, providing access to Hungary’s main international motorway network and the centre of Budapest in minutes by train. The Campona shopping centre and the Budateteny railway station are adjacent to the site, offering accessibility as well as restaurants, leisure and sports facilities.
Jason Oram, Partner & Fund Manager at Europa Capital, commented: “Our decision to launch a Central European logistics platform and fund the development of park22 reflect our view that a continuation of urbanisation trends will fuel ongoing demand for logistics space across Central Europe. We continue to see strong levels of occupier interest across our pan-European speculative development pipeline and look forward to partnering again with White Star Real Estate, with whom we worked on the development of the Małachowski Square office building in Warsaw, Poland, which we sold successfully in 2018 on behalf of our investors.”
Robert Martin, Partner and Head of Investments at Europa Capital, said: “park22 presents an opportunity to invest in a high-quality project which offers amenities as well as strong transport links. Budapest is experiencing a shortage of logistics supply, with a vacancy rate of below 4%, and we believe park22 will prove an attractive location for both third-party logistics players and e-commerce businesses. We have been active in the CEE region for a number of years, recently re-entering the Hungarian market with the acquisition of the Akadémia Business Center in Budapest earlier this year.”
Krisztián Barabás, Partner of Development and Operations at White Star Real Estate, added: “White Star has been an active player in the Hungarian and Central and Eastern European real estate development and management market for decades. We always take into account the latest industry trends and current tenant expectations across our investments and developments and offer real, market-focused solutions. In the case of park22, we have responded to the accelerated growth of online commerce by combining warehousing with office functions in a practical way, all within the boundaries of the capital, with direct motorway access.”