Develia signs a joint venture agreement with Hillwood for a logistics center in Malin
Develia signs a joint venture agreement with Hillwood for a logistics center in Malin. Develia signs a joint venture agreement with Hillwood. As part of the agreement, a partnership will be created to build a logistics park of at least 400 thousand GLA on a property located in Malin near Wrocław. The estimated value of the entire project will exceed 1.5 billion PLN.
As part of this cooperation, Develia will also sign a preliminary property sales contract with Hillwood for the property where the logistics center will be built. The terms of the contract have already been agreed upon and are attached to the joint venture agreement. The project will be executed in at least four stages, hence the contract foresees the sale of land in a staged manner to the special purpose vehicle, with a 25% share to be held by Develia. In the basic scenario, Develia does not anticipate any additional financial engagement in the execution of the logistics center.
Execution of the logistics center requires cooperation between the partners at all stages of the project – from obtaining the necessary administrative decisions, through construction, to commercializing the facility. The project will build upon the expertise of both companies but the operational management will be on the part of the Hillwood team.
“The joint venture agreement finalizes the arrangements contained in the memorandum of understanding. Gaining Hillwood as our partner will enable us to develop the land in Malin according to our strategy. We estimate the revenues from the sale of the land, which is to be executed in steps, to amount to approximately 34.7 million EUR, which is above the current carrying value of 70 million PLN. Additionally, Develia will be entitled to a share in the profits from the project. Such a model of cooperation will enable us to maximize value obtained through divestment of this asset bought by the company back in 2007”, says Andrzej Oślizło, President of Develia.
“The logistics park we are going to build together with Develia is a response to the enduring demand for modern warehousing spaces in the region of Wrocław and the Lower Silesia. The Hillwood team has vast expertise in building logistics and office parks in the region. The facilities we build have been very popular among our customers due to its quality and how they fit into the local landscape”, says Hubert Michalak, the President of Hillwood Poland.
Develia is one of the largest developers in Poland, executing housing and commercial investments in Warsaw, Wrocław, Kraków, Gdańsk, Łódź and Katowice. Since 2007, Develia (then LC Corp) has been a company listed on the Warsaw Stock Exchange. Until now, Develia has executed 95 facilities, including 88 housing and 7 commercial projects. In 2020, Develia generated 517.1 million PLN in sales revenues and 99 million PLN in adjusted consolidated net profit.