European Logistics Investment (ELI), a rapidly growing logistics platform in the Polish market owned by Redefine Properties, Madison International Realty, and Griffin Capital Partners, is expanding its portfolio in the Silesian Voivodeship by acquiring land in Knurów. The acquired land will be used for a BTS (Built-to-Suit) industrial project. The facility, which spans 34,681 square meters, has been pre-leased to Fortaco Group, a leading strategic partner to OEM (Original Equipment Manufacturer) customers in the heavy off-highway equipment and marine industries.
On the purchased land, European Logistics Investment (ELI) will develop a BTS investment spanning 34,681 square meters. The construction is planned to be completed in the second quarter of 2024, with the handover of the investment to the tenant scheduled for the third quarter of the same year.
"We actively diversify ELI's portfolio, constantly seeking new investment opportunities. The acquisition of land for a modern and ESG compliant logistics project located in the heart of Upper Silesia, secured by a long-term lease agreement, is a major success for our entire team. We continue to witness strong demand for high-quality warehouse spaces in Silesia, and we already have six existing projects and a land bank for the further development of two projects in this region in our portfolio," says Pieter Prinsloo, Chief Executive Officer at ELI.
The property has been fully leased to Fortaco Group. With this greenfield investment Fortaco expands its footprint for Steel Fabrication and Vehicle Cabin operations and additional efficiency based on a high degree of automation and strong operational excellence. Fortaco Group is a leading brand-independent company and one of the world's largest strategic partners to the heavy off-highway equipment and marine industries. Fortaco’s offering includes zero emission solutions and technology, vehicle cabins, steel fabrications, and assembly services. . The choice of Knurów as the location was driven by its proximity to the steel industry situated in the area.
The BTS will be completely tailored to meet the tenant's specific needs, while also adhering to the highest environmental standards. The property is expected to obtain an Excellent-level BREEM certification and achieve carbon neutrality by 2025. Its strategic location in the center of the Silesian Voivodeship ensures excellent connectivity to the entire region and convenient access to major national transportation routes such as the A1 and A4 highways which are part of key European transit corridors.
At of the end of H1 2023, ELI’s portfolio, including the landbank, reached 1.3m sqm and spans 30 projects across 10 logistics hubs throughout Poland.
ELI was advised by Rymarz Zdort Maruta on the transaction.