Zagreb 1 Successfully Completed

02.05.2023
Zagreb 1 Successfully Completed

The logistics park benefits from a strategic location near Croatia’s capital, with convenient access to the motorway network and the airport. The park also meets the highest logistics standards, designed to satisfy the requirements of the most demanding global occupiers. Given the limited supply of modern warehouse capacity in the local market, the project proved highly sought-after.

Thanks to the combination of premium specifications and a tight supply backdrop, the park achieved full occupancy of its leasable area even before construction was completed. Lease agreements signed with these tenants are long-term in nature, typically with an average term of up to 10 years. The tenants in the project include multinational companies with EUR-billion revenues and resilient business models, namely Deutsche Post (DHL), KUEHNE+NAGEL, Electrolux, PHOENIX Group, INTER CARS, and Cargo-Partner.

Deutsche Post is a German group active globally in logistics and postal services. KUEHNE+NAGEL is a Swiss-headquartered international logistics company. Electrolux is a well-known Swedish manufacturer specializing in household appliances. PHOENIX Group is a leading pharmaceutical wholesaler with roots in Germany. INTER CARS is a Polish distributor of automotive parts and one of the largest players in Central and Eastern Europe. Cargo-Partner is an Austrian company also operating in transport and logistics.

This tenant roster underscores our commitment to delivering projects to the highest quality standards and in the best interest of our clients, ensuring that invested capital is prudently allocated with minimal risk. The strong demand from high-quality tenants and the value created already during the construction phase highlight the project’s embedded added value.

As a result, the investment generates returns not only through rental income, but also through the appreciation in the logistics park’s underlying value. For our investors, we effectively created an alternative investment profile, broadly comparable to gaining exposure to the corporate credit of these multinational tenants. Investors can thus target materially higher returns, while the perceived safety of capital remains close to that of holding the tenants’ bonds. For reference, these global leaders can typically finance themselves in capital markets at coupons ranging from 0.02% to 2.375%.