GE Real Estate Central & Eastern Europe and Helios Phoenix have announced the creation of a joint venture to undertake €175 million of distribution warehouse developments throughout Romania.
The transaction represents GE Real Estate's first entry into the Romanian real estate market. The joint venture will initially develop seven Class A logistics and distribution warehouses, totaling 315,000 square meter located in the largest cities of Romania, with close access to highways and major roads, and with some located in the proximity of airports. The developments are being undertaken in response to the ongoing demand for high quality industrial warehouse and logistics facilities across Romania underpinned by its strong GDP growth.
The first projects, to be undertaken on a speculative basis, will be in Bucharest, Timisoara (Temesvár), Constanta, Brasov (Brassó) and Cluj (Kolozs). Phoenix Real Estate has been active in Romania since 2001. The Company has already developed over 60,000 square meter of warehouse and logistic facilities in Romania. Helios Properties, who have been trading for 11 years, are a major UK Industrial warehouse developer, procuring over 2 million square meters of space. Helios Properties and Phoenix Real Estate formed a joint venture in 2006 to develop and manage industrial warehouse and logistic properties in Romania.
Nestor Myrianthous, CEO of Helios Phoenix, commented: "We, at Helios Phoenix, are delighted to be collaborating with GE Real Estate, one of the world's leading commercial real estate companies to co-develop the most significant industrial real estate project in Romania to date." Karim Habra, Managing Director of GE Real Estate Central and Eastern Europe, commented: "These developments will be the first bespoke portfolio of logistics warehouses in Romania, a market which is currently undersupplied. The recent EU accession is expected to further enhance Romania's GDP growth and consumer and industrial demand, which in turn will lead to greater demand for warehouse space. "We look forward to partnering with Helios Phoenix on these developments. They have a strong reputation of developing high quality warehouse schemes with six years experience in the local market and we anticipate that we will derive great benefit from working with them on these exciting projects. Romania represents our 8th market in the region and as in prior markets we hope to build our presence in the market through partnerships with local players, such as Helios Phoenix. " (media.prnewswire.com)