KLM Nitra - 100% leased logistics building with a 10-year lease agreement

Invested

Required

154,38 %   

1 516 000 €

982 000 €

Investment opportunity in a newly constructed logistics building (use approval in 2019) with a 10-year lease agreement to 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.

  • The investment opportunity allows you to take advantage in the unprecedented growth in both e-commerce and delivery service sectors, which has led to an increased need for logistics space.
  • Opportunity to become a co-owner of an income producing property.
  • 10-year lease agreement signed with SPS, an established company that is part of Österreichische Post (Austria Post) that operates in 10 countries with an annual turnover of more than €2 billion and profits in excess of €144 million.
  • Inflation protection: rent will be increased by inflation each year.
  • The property is located close to the R1 expressway exit and only 5 km from Nitra city centre.
  • Construction of the building was carried out by HSF, an experienced construction company, and finance was provided by Tatra Banka a.s.

Show your interest to invest to gain access to the „Information on Investment“ document including: detailed information on the investment, its location, financial parameters, investment structure and schedule, KLM real estate company profile and analysis of the market and competitive environment.

If you missed the opportunity to invest in KLM Nitra and would like to find out more about upcoming real estate projects, please contact our team realestate@crowdberry.eu

Funded
Required capital
982 000 €
Number of investors
89
Invested
1 516 000 €
Minimal ticket
10 000 €

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About investment opportunity

MARKET

Demand for industrial and logistics properties has been experiencing growth and the coronavirus pandemic has actually positively impacted the revenues of businesses that operate within the field of e-commerce. This in turn has led to an increase in the demand for logistics services and for warehouse space by such businesses.

In 2019, the share of internet retail in Western European markets amounted to 12% of total retail sales. Due to the coronavirus measures in 2020, significant growth is expected with the share reaching 16.2% (source: The Centre for Retail Research).

The same trend is also evident in Slovakia, where the size of the e-commerce market in 2019 was €1,360 million. This represented a growth of 94% in just four years. Similar growth has also been experienced in courier and delivery services in Slovakia, where we saw a growth of 100% from 2013 to 2018. Together, this has created demand for storage space with cross docking capability and last-mile logistics space located closer to its customer base.

A further off-shoot of this rising curve of demand is the increase in industrial property prices. Over the last 11 years investment yields for industrial warehousing dropped from 10.0% in 2009 to 6.25% in 2020. This represents a growth in value of ca. 60% for industrial properties.

To access a comprehensive market analysis, which is part of the „Information on Investment“ document, please indicate your interest to invest. A market analysis example can be found in the gallery at the bottom of this page. 

PARTNER

KLM real estate has successfully completed development projects throughout Slovakia. Their projects have included shopping centres, retail parks, logistics parks, single residential dwellings and apartment blocks.

Over the past 17 years, KLM real estate has successfully completed 33 projects and generated several investment opportunities for its partners. Their completed projects total € 250 million in value. KLM has a similar successful track record in the sale of projects to institutional investors (e.g.Tatra Asset Management, P3 logistics parks and První Penzijní). Some of their project references include a retail park in Zvolen, a shopping centre in Dunajska Streda and a logistics park in Zilina. Their tenant portfolio includes several well-known logistics, delivery service and retailers, e.g. Slovak Parcel Service, Geis, GLS, DHL, Kühne & Nagel, Volvo, Mountfield, Teta, Tesco, alza.sk and many others.

For more information please visit KLM real estate’s website: www.klmre.cz/en

PROJECT

1. Refinancing part of equity

Part of the rationale of this transaction is to allow KLM to refinance part of their equity in the project. KLM cooperates with multiple financial partners and is interested in offering this investment opportunity via the Crowdberry platform. Therefore, Crowdberry investors have the opportunity to become co-owners of the building in Nitra and benefit from the profits generated from the leasing agreement to SPS and the expected sale of the property in the future. The plan is to co-own the building for a period of 2–3 years and thereafter sell the property for a higher price within a larger portfolio of buildings that KLM currently own together with some other projects that are currently in preparation. Should the property not be sold within 3 years, KLM real estate a.s. is obliged to purchase back the shares from CB investors according to the contracted conditions.

2. Preliminary investment timeline:

  • Crowdberry investment: 11–12/2020
  • Building ownership: 2021–2023
  • Sale of building on the market: 2022/2023

3. Status of the project at the time of investor entry: Building approved for use, remaining ca. 9-year lease term 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. Access to the 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 the commercial operations of international retailers e.g. Sconto and Makro etc), production and storage facilities of companies such as Tekmar (cereal bars), Solvent (the central warehouses of TETA and TOP drugstores), Víno-Nitra and GLS (parcel logistics).

Close by is the Nitra-Sever Industrial Zone, home to the Jaguar Land Rover car manufacturing plant, Foxconn and DHL. Neighbouring is Prologis’s Industrial Park Nitra (58,000 m2) and this global owner of industrial and distribution centres has over 4.5 mil. m2 of industrial space across the CEE region.

To access a comprehensive location analysis, which is part of the „Information on Investment“ document, please indicate your interest to invest. A location analysis example can be found in the gallery at the bottom of this page. 

5. Security of investment and control:

Equity will first be paid to Crowdberry investors and thereafter to KLM, which limits the downside risk of your invested capital.

The rules of corporate governance attached to the investment vehicle, through which the investment in the real estate will be held, gives specific rights to Crowdberry’s investors e.g. deselection, change of legal representatives of the investment vehicle, approval to changes in the business plan and other key material approvals required by the supervisory board of the investment vehicle.

If the property is not sold within 3 years, KLM real estate a.s. is obliged to purchase the shares back from Crowdberry investors according to the contracted conditions.

KLM IN THE MEDIA

ASB: ASB GALA 2020: Nominácie na ocenenie ASB Developer roka – v segmente retailu

Webnoviny.sk: Tatra Asset Management je novým majiteľom portfólia retail parkov v SR

Pravda.sk: Dopyt po priemyselných nehnuteľnostiach je vysoký, kvalita nedostatočná

Teraz.sk: Rast obratu onlinových obchodov prospieva doručovateľským firmám

Ihned.cz: Zájem o sklady sílí. Miliony do nich investují hlavně rostoucí e-shopy a logistické i farmaceutické firmy

24hod.sk: Nitrianskej fabrike Foxconn sa počas pandémie darí, týždenne naberá desiatky pracovníkov

Prologis: Prologis zahajuje výstavbu dvou budov na ploše 62 325 metrů čtverečních v Prologis Park Nitra

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