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Prague

JLL advised Tristan Funds on the largest direct real estate sale in the history of Czech market


​Advised by JLL, Tristan Capital Partners and its joint venture partner VGP have carried out the long-awaited sale of the Bora Bora portfolio of Czech logistics assets to P3.

With a sale price of €523mil, the sale is the largest real estate transaction in the history of the Czech real estate market. It is also the fourth-largest logistics portfolio transaction in Europe since the start of 2012, when activity in the market began to gather pace, according to Real Capital Analytics (RCA) data.

Tristan's CCP III and EPISO funds have sold 58 modern logistics buildings with a total of 627,000 m2 of lettable space that were acquired in a joint venture with VGP in 2011. The transaction includes 34 hectares of development land, primarily around Prague. The sale to European logistics specialist P3 is scheduled for completion in the fourth quarter of 2014, subject to the finalisation of contract terms and regulatory approval.

Phil Marsden, International Director, UK & EMEA Industrial Capital Markets at JLL, said: 'This sale clearly confirms the attractiveness of the CEE industrial real estate market and Czech Republic in particular. The transaction will set new benchmark for prime industrial product in CEE and presents an important milestone in the history of the CEE real estate markets. JLL is proud to be able to play such an important role in this sale process.'

Jean-Philippe Blangy, executive director of portfolio and asset management at Tristan, added: Working with our local partner VGP, we have successfully repositioned the portfolios to maximise occupancy. We have maintained an average lease term in excess of four years and added further value through the development of additional grade A space. This exit follows closely on the heels of a €472 million sale we did in the same sector of assets in Germany, Poland and France to SEGRO a few months ago. It means Tristan has sold over €1.0 billion in logistics assets in 2014 alone, representing the culmination of a structural market investment opportunity our research first identified 10 years ago.”