"We have registered unprecedented interest from investors for quality industrial and logistics assets in good locations leased to strong covenants. This transaction was no exception. The demand is driven by strong take-up in all the regions, unprecedented low vacancy rates, currently below 2.5%, recorded rental growth and very strong future prospects driven by e-commerce growth and changing needs in supply chain management. The I&L market in the Czech Republic is growing at ca. 10% every year and has more than doubled in size during the last 10 years, reaching 9.5 mln sqm. Despite that, the demand has exceeded the supply, with ca. 3 mln sqm leased in less than 3 years. On the other hand, in spite of a sharp decline in yields, there is still an attractive premium for Czech prime products with yields currently standing at 4.25%, which is 95% higher than in neighbouring Germany. We are pleased that we were able to achieve a new record yields for Ostrava region with this transaction," said Katarína Brydone, Head of Investment Properties in CBRE Czech Republic, whose team closed 12 transactions this year with their overall value reaching EUR 450 mln.
The transaction included three brand-new A class logistics halls forming Logistics Park Nošovice with total GLA of 64,000 sqm. The park is fully leased to the logistics company Hyundai Glovis, which is servicing the adjacent production plant Hyundai Motor, where the popular Tucson and the electric vehicle Kona Electric are being produced. The further two halls form part of OSTRAVA AIRPORT MULTIMODAL PARK in Mošnov and offer 77,000 sqm of grade A logistics facilities. The halls are also fully leased to covenants such as Continental Barum, DHL, Hyundai Glovis, M.K. Invest, Rhenus Logistics, Skladon and UFI Filters. The multimodal park benefits from its strategic location, right next to Leoš Janáček International Airport Ostrava in the Mošnov industrial zone, with a direct highway and railway connection. In addition, the park benefits from a railway container terminal, strategically placed on the planned "New Silk Road", which is unique in its size on a Central European scale and maximum handling capacity.
"I am pleased that this deal shows that J&T together with CONCENS INVESTMENTS can unlock unknown locations, attract really great blue chip tenants and deliver first class investment products," stated Daniel Kollár, Project Manager at J&T IB Capital Markets.
