462 000 €
982 000 €
Investment opportunity in a newly constructed logistics building (use approval in 2019) with a 10-year lease agreement with Slovak Parcel Service (SPS), a provider of express parcel services. The building has a leasable area of ca. 1 200 m2 and is located in close proximity to the Metro and Sconto retail stores, the Jaguar Land Rover car manufacturing plant and Nitra-Sever Industrial park.
KLM real estate (KLM) has 17 years of experience in real estate development, with a strong team in place and an impressive portfolio of 33 completed projects with renowned partners.
Learn more about the investment opportunity by signing up for a dedicated webinar with KLM real estate representatives on 22nd of October at 4 p.m. Sign up here for the webinar (only investors registered on the Crowdberry platform will have the opportunity to join).
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Demand for industrial and logistics properties is experiencing constant growth. The coronavirus pandemic has greatly contributed to the massive rise of e-commerce, and thereby an increase in demand for additional logistics services and warehouse space by online shops.
In 2019, the share of internet retail in Western European countries amounted to 12% of total retail sales. Due to coronavirus measures in 2020, significant growth is expected with the share reaching to 16.2% (source: The Centre for Retail Research).
This trend is also evident in Slovakia, where the size of the e-commerce market in 2019 was €1 360 million. This represents a growth of 94% in just four years. Similar growth has been experienced as well in courier and delivery services in the Slovak market, where we see an increase of 100% from 2013 to 2018, which creates demand for crossdocks or last-mile warehouses that are located closer to customers.
The rising curve of demand is followed by the growth of industrial property prices. Over the last 11 years, the required rate of return (yield), dropped from 10,0% in 2009 to 6.25% in 2020, which signifies growth in the value of industrial properties of approximately 59%.
KLM real estate has successfully implemented development projects throughout Slovakia. It focuses on the development of shopping centres, retail parks, logistics parks and residential buildings, as well as on the construction of apartment blocks.
Over the past 17 years, KLM real estate has managed to complete 33 projects and generated several investment opportunities for its partners with completed projects in total value of €1.5 billion. KLM has a similar successful track record in the sale of projects to institutional investors (Tatra Asset Management, P3 logistics parks, První Penzijní). Its project references include a retail park in Zvolen, shopping centre in Dunajska Streda and a logistics park in Zilina. Its client portfolio also includes several important logistics, delivery services and retail companies, which include Slovak Parcel Service, Geis, GLS, DHL, Kühne & Nagel, Volvo, Mountfield, Teta, Tesco, alza.sk and more.
Visit KLM real estate’s website for more information: www.klmre.cz/en
1. Refinancing part of equity
The purpose of the investment is to refinance part of KLM’s equity in the project. KLM cooperates with multiple financial partners and is also interested in offering an investment opportunity on the Crowdberry platform. Thus, Crowdberry investors have the opportunity to become co-owners of the building in Nitra and gain the right to participate in the profits from the leasing and sale of the property in the future. The plan is to co-own the building for a period of 2–3 years and subsequently sell it for a higher price within a package that contains a wider portfolio of buildings that KLM currently owns, together with future projects that are currently being prepared for construction. If the property is not sold within 3 years, KLM real estate a.s. is obliged to purchase the shares from CB investors according to the contracted conditions.
2. Preliminary investment timeline:
3. Status of the project at the time of investor entry: Building approved for use, remaining 9-year lease agreement with SPS (10-year lease signed in 2019)
4. Attractive location:
The SPS logistic building is located 5 km from Nitra city centre in the Luziansky municipality, a location with well-developed infrastructure. The exit from R1 expressway, which is part of the Trans-European corridor and southern Bratislava-Kosice route, is only 4 km from the building.
The building is located in close proximity to commercial sites of international companies (SCONTO, MAKRO and more), production and storage facilities of companies such as Tekmar (cereal bars), Solvent (central warehouses of TETA and TOP drugstores), Víno-Nitra and the competitor parcel logistic company GLS.
Nearby is the Nitra-Sever industrial zone, the base of the Jaguar Land Rover car manufacturing facility, Foxconnn and DHL. Neighbouring is the industrial building of the international industrial and distribution centres operator Prologis, the lessor of over 4,5 mil. m2 of industrial space in the CEE region.
5. Security of investment and control:
Equity will first be paid to Crowdberry investors and then to KLM, which decreases the risk of losing invested capital.The control status of the investors provides control of changes in key contracted conditions and changes in the business plan, as well as the necessary agreement of the supervisory board.If the property is not sold within 3 years, KLM real estate a.s. is obliged to purchase shares from Crowdberry investors according to the contracted conditions.
ASB: ASB GALA 2020: Nominácie na ocenenie ASB Developer roka – v segmente retailu