ELI's portfolio of completed and under-construction projects has exceeded 1 million sqm of leasable area

The portfolio of completed and under-construction projects of European Logistics Investment in the first half of 2023 exceeded 1 million sqm of leasable area. The logistics platform owned by Griffin Capital Partners, Madison International Realty and Redefine Properties focuses on the Warsaw and Kraków markets.

During the first six months of 2023, the company completed two logistics projects with a total area of approximately 70.5 thousand sqm GLA. The investments are located within the Warsaw metropolitan area and in Kraków. The newly delivered projects achieved a high occupancy level of 61 percent upon commissioning. The current tenant profile includes the manufacturing and logistics industries. The facilities are in the process of BREEAM certification at the Very Good level.

In the first half of 2023, ELI also began the implementation of two new projects with a total area of nearly 35 thousand sqm GLA. The space that will be available in them has already been fully leased. Both investments are located in the vicinity of Kraków.

As of the end of the second quarter of 2023, the ELI portfolio, including the land bank for future investments, totals 1.3 million sqm GLA and includes 30 projects located in 10 logistics centers across Poland.

ELI continues to invest in the strategic markets of Kraków and Warsaw, which are among the best-developing regions in Poland. Kraków is an excellent example of a market where - due to a market imbalance between supply and demand - we are observing a significant increase in rental values. Despite the limited availability of land in this area, ELI has acquired attractively located investment plots that met the demand of tenants in the region, thanks to which the projects quickly moved into the construction phase. To date, the ELI platform has delivered or acquired six projects in the Kraków region, with a total area of 172 thousand sqm GLA, which accounts for 23 percent of the total leasable area in the Kraków market. At the same time, we are still looking for new, interesting investment opportunities, both in the Kraków and Warsaw regions - says Pieter Prinsloo, CEO of European Logistics Investment.

Over the last 12 months, up to June 2023, ELI signed agreements for a total area of 184.7 thousand sqm GLA. This is almost 20 percent of the platform's portfolio of completed and emerging projects. Out of 22 lease agreements, the majority of the leased space fell to the Warsaw area (five transactions, 71 thousand sqm) and Kraków (six transactions, 53 thousand sqm). The vast majority of transactions were new lease agreements - 140 thousand sqm. Lease extensions covered 34 thousand sqm, and existing space leased to new tenants accounted for 11 thousand sqm of total tenant activity.

The strong dynamics of transactions are related to the pace of development of our portfolio. When we started ELI's operations in 2018, we set ourselves the goal of reaching 1 million sqm in our portfolio within five years, and this strategic goal has been achieved. This means tripling our original portfolio of 312 thousand sqm, which we managed to achieve despite selectively conducted sales processes of selected assets with a total area of 358 thousand sqm. We continue to observe strong demand among tenants, which translates into rising rental rates achieved in newly signed agreements. The growth in operating income of our projects provides a solid foundation for the further development of our portfolio and provides the necessary liquidity that supports the working capital of our platform – adds Nebil Senman, co-owner and managing partner at Griffin Capital Partners.

The largest lease agreements in terms of area were signed in Radzymin (nearly 53 thousand sqm), in Kraków North (26 thousand sqm) and in Warsaw's West Błonie (10 thousand sqm). All concerned new development projects.