Apr 17, 2019
TPG Real Estate Partners and Contera Form a Strategic Venture
Partnership brings together complementary capabilities to pursue industrial real estate investment opportunities and development projects in Central EuropeSan Francisco, London, and Prague – April 17, 2019 – TPG Real Estate Partners (“TREP”), the dedicated real estate equity investment platform of global alternative asset firm TPG, and Contera, an established developer and operator of industrial parks in the Czech Republic, announced today they have formed a strategic venture (the “Venture”). The Venture will seek to acquire and develop industrial projects in Central Europe, primarily in the Czech Republic and Slovakia. One of the Venture’s first projects is a 140,000 sqm industrial zone directly adjacent to the D1 highway in Ostrava-Hrušov.
In connection with the formation of the Venture, TREP has acquired certain assets from Contera, including the company’s industrial parks in Teplice and Ostrava, in a transaction valued at more than 90 million EUR. Contera will continue to operate and manage these assets, as well as the assets acquired and developed through the Venture. Contera will also continue to independently own and manage the remainder of its portfolio, which includes approximately 110,000 sqm of industrial property.
“In forming the Venture, we are partnering with a highly experienced and proven local team to pursue opportunities in a region and sector that continue to experience strong growth trends,” said Michiel Celis of TREP. “We look forward to making this a successful, long-term partnership and hope to invest significantly more capital as we source new projects and execute on an exciting pipeline of opportunities.”
“After 10 years of growing Contera independently, thanks to this partnership with a strong global investor, we can start a new era in the development of our company,” said Tomáš Jirků, Co-Founder and CEO of Contera. Dušan Kastl, Co-Founder and Managing Director of Contera, added, “Our partnership with TREP will allow us to expand significantly and reach strategic scale in the Czech and Slovak markets.”
TREP has a history of developing strategic partnerships with high-quality management teams and operators to capitalize on compelling market opportunities. Select current and past investments include A&O Hotels and Hostels, Arlington Business Parks, Evergreen Industrial Properties, Icon Industrial, P3 Logistic Parks, and TriGranit.
Founded in 2009, Contera develops, owns, and operates industrial business parks in prime locations in the Czech Republic. Contera’s full-service business model provides clients with leasing options within its portfolio, as well as customized, build-to-suit solutions. The company also specializes in the redevelopment and revitalization of brownfield properties in well-connected locations. This year, Contera celebrates its 10th anniversary.
Cushman & Wakefield served as an advisor to Contera for this transaction.
About TPG Real Estate
TPG Real Estate ("TPGRE") is the real estate platform of TPG, a leading global alternative asset firm with more than $104 billion of assets under management and 17 offices around the world. TPGRE includes TPG Real Estate Partners (“TREP”), its equity investment platform, and TPG Real Estate Finance Trust (NYSE: “TRTX”), its debt origination and acquisition platform. TREP focuses primarily on investments in real estate-rich companies, property portfolios, and select single assets located in North America and Europe. TRTX originates and acquires senior real estate loans across a broad spectrum of asset classes in North America. TPGRE currently manages approximately $10.8 billion in assets across both platforms. For more information please visit www.tpg.com.
Founded in 2009 by experienced professionals in the field of property development, project and construction management, Contera owns and operates industrial parks in major locations in the Czech Republic. Most buildings in these parks have been completed and leased to leading Czech and international companies, mainly in the logistics and manufacturing sectors. For more information www.contera.cz
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