Develia concluded a cooperation agreement with Hillwood Malin Development Logistics and Bunclodico Investments, i.e. companies from the capital group to which Hillwood Polska belongs, for the construction of a logistics park with a minimum area of 400,000 sqm GLA, on the property located in the town of Malin, in the commune of Wisznia Mała (Dolnośląskie Voivodeship), the company announced. The total value of the project is over PLN 1.5 billion.
The cooperation under the JV agreement will consist in the creation of one or more investment companies with the intention of building a logistics park (center) with the necessary technical and road infrastructure. The project will draw on the experience of the issuer and Hillwood, and operational management will be carried out by the Hillwood team. Commitment of the issuer. was set at 25%, and Hillwood at 75%. In the basic scenario, the issuer’s total capital commitment is estimated at approximately EUR 8.7 million and will be fully financed from the sale of real estate to JV, it was announced.
“The joint venture agreement finalizes the arrangements contained in the letter of intent. Acquiring a partner such as Hillwood will allow for the development of the land in Malina in accordance with our strategy. We estimate that the revenue from its sale, which we will implement in stages, will amount to approximately EUR 34.7 million. , which is above the current book value of PLN 70 million. Additionally, Develia will have a share in the profits from this project. This model of cooperation will allow us to maximize the value of the asset that the company bought in 2007 as part of the divestment,” said the president of Develia, Andrzej Oślizło.
“The logistics park that we will build in cooperation with Develia is a response to the unflagging demand for modern warehouse space in the area of Wrocław and Lower Silesia. The Hillwood team has extensive experience in the construction of logistics and office parks in this region. The facilities we build are very popular among customers due to the high quality and adaptation to the local landscape,” added Hubert Michalak, President of Hillwood Polska.
The commencement of the project is conditioned by a change in the intended use of the property, enabling the implementation of service functions. As part of the JV agreement, the partners undertook to cooperate in obtaining the necessary decisions, both for the construction itself and for the commercialization of the project.
The planned total value of the entire project will exceed PLN 1.5 billion, and the completion of the entire investment is planned within 6 years of the change of use of the property.
Source: Develia, Hillwood Polska and ISBnews
