Bank Pekao provides landmark financing for largest city logistics project
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Bank Pekao provides landmark financing for largest city logistics project

Bank Pekao SA is releasing another loan tranche to finance the ongoing redevelopment phase of City Point Targówek. It involves the construction of a second building (C2) as part of the largest city logistics project. Under a portfolio loan agreement signed two years ago, the banking institution provided Peakside Capital with financing comprising an investment loan and a VAT working capital loan amounting to over PLN 500 million. This is a record amount of funds secured for a city logistics project.

Pekao disbursed to Peakside Capital another loan tranche. The funds will be used to continue the redevelopment of City Point Targówek. In 2022, Bank Pekao S.A. entered into a portfolio loan agreement with the investor, committing to provide an investment loan of over EUR 82 million and a VAT loan exceeding PLN 100 million, bringing the total facility to over PLN 500 million.

“The loan agreement with Bank Pekao SA provides a robust foundation for financing our ambitious plan to deliver the largest city logistics project. Our close collaboration with a leading banking institution allows us to draw on the facility as we advance through each phase of the project. The flexible structure of the financing is well-suited to the project's progress,” said Roman Skowroński, Managing Director of Peakside Capital Advisors in Poland.

The latest tranche from Pekao will be used to fund the construction of the second building (C2) within City Point Targówek, Warsaw’s largest urban logistics park. The completion of this phase is anticipated later this year. This will mark the first multi-let facility within the phased redevelopment. Building C2 will offer over 25,000 square metres of space, with individual units ranging from 1,600 to 4,300 square metres. Over 70% of the available space has already been pre-let.

The redevelopment of City Point Targówek is guided by a strong commitment to sustainability. Building C2 will be equipped with cutting-edge photovoltaic systems with a capacity of 1 MW. Ultimately, the park’s photovoltaic installations will generate 4 MW, supplying at least 25% of the complex’s total energy consumption. The development will also feature electric vehicle charging stations, modern recreational areas, and landscaped green spaces. The brownfield revitalisation aims to achieve BREEAM Excellent, LEED Gold, and WELL-HSR certifications.

“Our goal is to provide our Clients with strong financial support in the development of projects on the commercial real estate market, including warehouses in Poland. This business sector is well-regarded by us and has a very large growth potential. We are glad that we are participating in the implementation of such ambitious projects emerging in Warsaw and its surroundings. The Peakside Project involves the revitalization of old warehouses into modern facilities, along with a significant improvement in their energy efficiency and their impact on the environment, which fits perfectly into the Bank's current strategy," adds Dieter Lobnig, Director of Investment Banking and Real Estate Financing Department of Bank Pekao SA.

Thanks to Karolina Różalska, Daniel Kudrycki and Piotr Kwadrans, from Pekao team, who are directly involved it this transaction, funds from Bank Pekao SA have already been partially deployed. EUR 6 million was allocated to finance the first phase of City Point Targówek’s redevelopment, which delivered a modern building (A) fully leased to DPD Polska.  Further funding has been utilised for the acquisition and modernisation of two warehouse parks near Warsaw: Logistics Point Raszyn and Logistics Point Piaseczno. Upon completion, the three logistics facilities will collectively provide nearly 150,000 square metres of warehouse and office space. Peakside pursues a “value-add” investment strategy, which enhances the value of its properties through leasing, redevelopment, expansion, and upgrades to meet ESG standards.

 

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