Standard Life Investments has bought its first property in central Europe.
The UK institution paid Dutch firm Redevco €22.1m — a 7% yield — for the Tulipan Park Logistics Centre, close to Prague airport. The purchase was for its European Property Growth Fund. Four tenants, including shipping firm Maersk, occupy the two warehouses, totalling 22,050m2.
Strong economic growth prospects and better yields than much of western Europe encouraged Standard Life to follow other foreign investors into the Czech market. But the yield gap has already tightened since the country’s accession to the European Union in 2004.
Martin McGuire, European investment director at Standard Life Investments, said the deal marked “the start of further investment by us in this region and also in other new markets”.
King Sturge acted for Redevco and Knight Frank for Standard.
