Fortress Logistics Eli Park 1
Real estate investment trust (Reit) company Fortress Reit has concluded its first logistics acquisition in Romania, after reaching an agreement with Element Industrial and Paval Holding for Eli Park 1, an A-grade industrial development, located in Buftea-Chitila.
Fortress’ long-term strategy to pivot the business to a one-third convenience retail and two-thirds logistics real estate portfolio in both South Africa and Europe has helped the Reit to achieve significant growth during this volatile trading period, the company said in a statement on September 7.
Commenting on the newly acquired Fortress Logistics Eli Park 1, Fortress CEO Steven Brown said that Romania, along with the rest of Central and Eastern Europe (CEE), is “one of the most exciting long-term logistics and warehousing investment propositions globally [owing] to the high industrial and consumer growth potential and close access to Western Europe”.
He explained that the market was in the development phase, with a lot of opportunities for real estate investment for Fortress.
“As retail competition in the advanced economies of Western Europe is increasingly determined by the ability to successfully support e-commerce via omnichannel, growth in the logistics real estate sector in CEE will continue for decades to come.”
Brown noted that Fortress would continue to invest in its warehouse portfolio across CEE in the coming years.
Earlier this year, the company acquired its first logistics assets in Poland – two logistics parks in Bydgoszcz and Stargard.
“In saying this, we are not strangers to the region, given that we are the largest shareholder in NEPI Rockcastle, active in high-growth retail real estate in CEE.”
Eli Park 1 is a 50 000 m2 gross lettable area (GLA) Class A logistics and industrial park, located 15 minutes outside Bucharest.
This is expected to change the logistics industry for Romania’s Capital City. Eli Park 1 is leased to tenants such as Arctic, Decor Floor, Dentotal, Euro Games Technology Romania and Mobilier 1.
The concepts used in the development of Eli Park 1 allow for flexibility to accommodate a range of tenant needs, both technical and operational, Fortress said.
Eli Park 1 was developed in joint venture by Element Industrial and Paval Holding, and the transaction has been coordinated by a joint team from Element Group, Paval Holding and Fortress Reit assisted by Dentons, CBRE Romania, CWE and PWC.
“Eli Park 1 was developed to a very high standard, which attracted Fortress Logistics to the property. The transaction confirms Buftea-Chitila as the third logistics hub near Bucharest, as well as the developing force of Element Industrial, recognised by a worldwide real estate giant,” said Element Industrial MD Andrei Jerca.