Poland’s warehouse market continues to thrive with major logistics deal

REINO IO Logistics warehouse, Poznań
The recent purchase of a portfolio of five logistics parks in Poland by the UK’s iO Asset Management and Poland’s REINO Capital is another indication of the attractiveness of the country’s warehouse market to international investors.

The following news items appeared in PT Daily, Poland Today’s daily business newsletter, on Monday 18 May – free to register here

Logistics portfolio acquired by Polish-UK fund backed by Grosvenor Group

Polish Logistics LLP, an investment vehicle established by the UK’s iO Asset Management and Poland’s REINO Capital, has expanded its portfolio with the acquisition of five logistics parks in Poland from AEW in a deal backed by international property company Grosvenor Group. The vehicle is managed by REINO iO Logistics. The acquisition of the portfolio is the second investment by Polish Logistics LLP after its purchase of the 135,000-sqm Logistic City in Piotrków in June 2020. The parks – in Łódź, Poznań, Sosnowiec, Bielsko-Biała and Rzeszów – total 208,992 sqm and are let to 28 tenants including, Hutchinson, Omega Pilzno, DAMCO and Pekaes. 

“The logistics market in Poland is attractive due to its location, size and growth potential,” said Angus Scott Brown and Dorota Latkowska, joint Managing Partners of REINO iO Logistics. “Its strategic location and ability to serve the whole of Western and Eastern Europe, its occupational costs that are some of the lowest within developed countries in Europe, its rail link to China and access to deep seaports make it a compelling market for us.”

Total industrial market investment transactions amounted to EUR 425 mln in Q1 2021, accounting for over 30% of total capital invested into Poland’s commercial real estate sector, according to RE agency Axi Immo. The total warehouse investment figure in 2020 was EUR 2.6 bn, 65% higher than in 2019 and 41% more than the previous record set in 2018 (EUR 1.8 bln).

 

Y-y rise in exports to Germany in Q1 

Poland’s export figures for the period of January – March 2021 amounted to PLN 298.8 bn,  according to Statistics Poland (GUS), with imports at PLN 287.9 bn, giving a positive trade balance of PLN 10.9 bn. Compared to the corresponding period of 2020, exports increased by 14.6%, while imports rose by 12.3%. Q1 2021 saw a decrease in exports to the UK, however exports to its biggest trading partner, Germany, increased by 1.1% y-y, amounting to 28.9% of the country’s total exports. 

 

AT&T expected to purchase Discovery, owner of TVN

U.S. telecoms operator AT&T is nearing a deal to combine its content unit WarnerMedia with rival Discovery, which owns Polish media and entertainment group TVN, to create a media giant with an enterprise value of USD 150 bn, the Financial Times reported on Monday. A deal could be announced as soon as this week, said an inside source who did not wish to be named. The structure of the deal remained unclear but AT&T, which has a market value of about USD 230 bn, is expected to control most of the combined entity. 

TVN (Telewizja Nowa) has often found itself ‘in opposition’ to the government by default, with its news reporting often contrasting markedly to that of state-owned TVP (Telewizja Polska) media group. This provides a restraining hand on the government’s efforts to curb foreign ownership of media in Poland as it does not want to antagonize relations with its crucial US ally. In April 2020 the US Ambassador at the time, Georgette Mosbacher, commented publicly that TVN “is part of the Discovery family – a publicly traded US company… committed to transparency, freedom of speech and independent, responsible journalism.” Soon after her appointment in February 2018, the Ambassador had written to Prime Minister Mateusz Morawiecki expressing “deep concern over recent allegations made by members of the Polish government against… TVN”. A November 2020 article in Germany’s Deutsche Welle estimated that foreign ownership of Polish media stands at about 40%. 

 

Polish company to build almost 1000 e-mobility charging stations with Chinese technology

Polish NewConnect-listed e-mobility charging stations operator Devoran intends to build a network of 980 electric car charging stations in Poland over the next three years, according to Polish press agency PAP. The first stations will be commissioned by the end of September. The technology provider will be Chinese Shenzen Sinexcel Electric, and within three years. Devoran, which is in the process of changing its name to Devo Energy, specializes in the mass development of single-family houses, generation of electricity, as well as local e-mobility based on its own synchronized system of photovoltaic modules.

 

Selling the ‘Polish Deal’ around the country

Prime Minister Mateusz Morawiecki will visit Lubelskie, Podkarpackie and Małopolskie voivodeships to promote the “New Deal” development plan presented last Saturday, as part of the government’s efforts to sell their new economic plan. The measures (known as ‘Nowy Ład’ in Polish, directly translated as ‘New Order’ but termed in English as the ‘New Deal’ or ‘Polish Deal’) will – among many others – reduce income tax for low and medium earners and are designed to push more workers from self-employment contracts to full-time contracts. It also aims to increase spending on the national health service from just over 5% of GDP to 7% of GDP by 2027. On Tuesday, Morawiecki will meet in the city of Rzeszów with business representatives.

The Ministry of Finance expects the tax changes to enter into force from 2022, Deputy Minister of Finance Jan Sarnowski said during a press conference. Opposition politicians have accused the government of trying to shore up its position with the electorate ahead of parliamentary elections which must take place before the end of 2023.

 

New government measures likely to speed up residential property price rises

The Warsaw Stock Exchange’s WIG-Nieruchomości (WIG-Real Estate) index rose 3% on Monday after proposals presented by the governing Law and Justice (PiS) party on Saturday aimed at helping young Poles buy their own apartments. The measures, under the recently-announced “New Deal” economic platform, may cause an increase in real estate prices, analysts say. The government plans to provide up to PLN 100,000 contribution to a housing loan and redemption of housing loans for up to PLN 150,000 depending on the number of children in the family. The programme will probably be launched in one or two years, according to money.pl. 

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Written by: Richard Stephens