We have entered a strategic collaboration with the German firm GARBE Industrial Real Estate CEE. The first joint project will be the construction of an industrial hall in the Czech town of Klášterec nad Ohří covering 20,815 square metres of floorspace and valued at approximately 30 million euros.
The Progresus investment group, in cooperation with Halcyon Capital Partners, has entered the first major project with the German giant GARBE Industrial Real Estate CEE, specializing in logistics and industrial real estate. Together, we will build GARBE Park Chomutov II, a logistics centre on a 45,442 square metres plot with over 20,000 square metres of leasable area in the strategically situated Verne industrial zone just outside the town of Klášterec nad Ohří. Construction will begin in early 2023, and the new building will meet the strictest ESG standards for the sustainable construction of industrial real estate with BREEAM certification at the Excellent level.
Industrial real estate is a great investment opportunity
“More than half a year of negotiations has been a success. On behalf of Progresus Group, I’m pleased to announce the start of a long-term partnership with the leading international company GARBE, with whom we’ll be working in the coming years on the construction of logistics real estate in the Czech Republic,” says Lukáš Zrůst, co-owner of Progresus. “Just like us, GARBE places great emphasis on longevity and ESG, which means that even when entering the world of industrial real estate, we don’t have to make concessions on our high standards. As part of the diversification of the group’s activities, logistics real estate represents a very interesting segment and a great opportunity, what with the limited selection of properties and extraordinary market demand, and we plan to invest in it in the coming years. Work on the first project will begin in the first part of next year, and the building will be completed in 2023. In order to forestall logical questions from the media, we will be announcing the lessee of GARBE Park Chomutov II in the first quarter of next year,” explains Lukáš Zrůst.
Strategic partnership with the strongest ones
“We’re happy to announce our first joint project with Progresus and Halcyon,” says Martin Stratov, Business Development Director for GARBE Czech Republic and Slovakia. “Our family of industrial complexes is growing with a second project in Northwest Bohemia, GARBE Park Chomutov II. We continue to grow, and now we also have a strong investment partner on our side. It goes without saying that this development project will meet our highest standards in terms of quality, sustainability, and services for our customers.”
GARBE Park Chomutov II follows the success of the GARBE Park Chomutov
industrial park in the town of Chomutov, which features a total gross leasable area of 30,000 square metres. The new development project in the Verne industrial zone near Klášterec nad Ohří will increase this area by an additional 20,815 square metres.
“We’re pleased that we’ve succeeded in organizing this joint project between the dynamically growing Progresus, ourselves, and the established and recognized European developer GARBE. Thanks to outstanding cooperation, we acquired the land in Klášterec nad Ohří very quickly and can now begin with the project. Moreover, arranging the first local equity partnership for GARBE in the Central and Eastern European markets demonstrates our ability to work with leading international and local companies, and this journey together with Progresus and Garbe has allowed us to expand our portfolio into the area of logistics and light industrial real estate. Last but not least, we very much value the truly intensive work of all the other advisors, partners, and counterparties in this first joint transaction,” says Radek Kučera, founder and partner at Halcyon Capital Partners.
The role of the partners
Majority of the financing for the project is being provided by Progresus Group with a combination of sources, namely its own equity and loan financing. For other planned projects, the group will be using its own equity, loan financing, qualified investor funds, and co-investors. Halcyon Capital Partners is a partner in the project, advisor, and co-organizer of the entire transaction. The project developer and co-investor is the German firm GARBE Industrial Real Estate.
An attractive location is essential
Industrial real estate situated near the German border has long been in great demand. The Verne zone in Klášterec nad Ohří has capitalized on an available labour force, Czech-German trade, and its location. GARBE Park Chomutov II will be easily accessible from both the R13 trunk road and the D7 motorway providing a direct connection to Germany. This makes the locality ideal for international companies by granting them with easy access to a number of key European markets.
GARBE Industrial Real Estate
GARBE Industrial Real Estate is a prominent development group specializing in logistics and industrial real estate in Europe. The firm is based in Hamburg, Germany, and has been a successful market player for 25 years. In that time, the firm has been a key partner to companies providing services in the transportation, logistics, and manufacturing industries. The logistics portfolio of GARBE Industrial Real Estate comprises more than 5.3 million square metres in some 194 development projects in six countries, and the firm manages more than 10 billion euros between its own capital assets and those of its investment partners. GARBE Industrial Real Estate is a subsidiary of the family-run real estate firm GARBE, which was founded in 1965 by Mr Bernhard Garbe.
Halcyon Capital Partners
Since its founding in 2020, Halcyon specializes in real estate investment and financing, and to date the team has participated in transactions more than EUR 2 billion. The firm has a development portfolio with of approximately EUR 150 million with other developers. As an advisor, it represents both private regional and international institutional investors. Lastly, the firm is a fundraising partner to several leading real estate developers throughout Central and Eastern Europe.