PRAGUE-VGP has entered into a venture with European Property Investors Special Opportunities LP, a fund co-advised by AEW Europe, to take over a logistics portfolio valued at about $427 million. The fund entered into the 80-20 venture with VGP for about four million square feet.

The majority of the industrial logistics complexes, about 85%, are located in VGP’s flagship park in Horni Porcernice. Most of the industrial properties in the portfolio were constructed between 2005 and 2010. The portfolio also includes another nine buildings, about 700,000 square feet, yet to be developed.

The portfolio is about 99% occupied. There are more than 110 tenants, including MD Logistika, Wavin Ekoplastik, IKEA and Coca Cola.

VGP will provide development management services to the fund for the development pipeline, and will be retained as asset manager, responsible for property management, facility management and leasing. Daniel Harris, co-head of investment at AEW, said the opportunity allowed the fund to purchase a core logistics park with very low vacancy. “With the future development potential we intend to create the pre-eminent logistic platform in Prague to benefit from future economic growth in the Czech Republic,” Harris said.

Cushman & Wakefield and lawyers from Global Real Estate Group represented the fund. Jones Lang LaSalle represented VGP.