LPP, a Polish clothing manufacturer effects one of the biggest warehouse lease transactions in Slovakia.
LPP leases 25,400 sq. m from PNK Group in PNK Park SEREĎ. Within 3 years, the leased area will be increased to 32,700 sq. m.
LPP, the biggest Polish clothing manufacturer in Central and Eastern Europe (owner of five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay) in line with its development strategy for the coming years, leased 25,400 sq. m of industrial space from PNK Group in PNK Park SEREĎ in Slovakia. The contract provides for an option to lease another 7,300 sq. m in the same building within three years. Therefore, the company could occupy the entire second building of the PNK Park SEREĎ with an area of 32,700 sq. m. JLL, a leading real estate consultancy company acted as a consultant for the preparation and execution of this lease contract which is one of the biggest transactions recently recorded in the Slovak market.
LPP will use this building as an e-commerce Fulfillment Center which will serve, besides Slovakia, the entire region of Central Europe. The company will focus on the automation of the warehouse processes in order to ensure high efficiency and shorten lead times. It is also planned to equip the facility with modern offices and a canteen to safeguard the best working conditions for the employees.
“We are pleased that such an important market player as LPP has chosen our industrial park. We managed to rent out the industrial buildings constructed in 2018 in just over six months,” said Azamat Yerzhanov, Partner of PNK Group Europe. “The transaction with LPP entails the possibility to lease 7,300 sq. m in the finished building in PNK Park SEREĎ for a three-year term”.
“The decision on leasing a new warehouse in Slovakia, which will serve as an e-commerce Fulfillment Center, is an integral part of our strategy concerning development of the international distribution network. The location and the facility itself have been carefully selected, in close cooperation with JLL Slovakia. They meet several criteria, such as: proximity to the LPP’s key markets, availability of workforce and technical specification of the building allowing for implementation of the state-of-the-art intralogistics technology and automation of the Fulfillment process in the near future” – explains Piotr Dopierała, LPP Logistics Director.
At present, LPP’s online stores are served by Fulfillment Centers in Gdańsk, Stryków and Moscow and their total industrial space amounts to over 70,000 sq. m. Soon, the network will be extended by a warehouse in Romania (22,000 sq. m), which is currently under construction.
“The new Fulfillment Center in Slovakia will play a crucial role in LPP’s distribution network, ensuring the highest standard of service to the customers of our online stores not only in Slovakia, but also in the Czech Republic, Hungary, Slovenia, Croatia and Bosnia and Herzegovina. This investment will soon allow us to offer all customers of our five fashion brands on these markets, the next business day deliveries and even same day deliveries in a few locations. This, in turn, will help the company to significantly boost its competitiveness.” – adds Piotr Dopierała.
The new warehouse will create jobs for several hundred people. The Polish clothing manufacturer, currently employing over 25 thousand people on three continents, is known for its long-standing commitment to ensuring high standards of working conditions for its employees. This time will be no exception. LPP, in cooperation with PNK Group and JLL (Tétris), has already started working on modern solutions in this respect in its new warehouse in Slovakia. According to the Company, these conditions will reflect the highest world standards.
“LPP has chosen Slovakia because we were able to present a highly competitive and quality product which can easily compete with the most modern logistic properties across Europe. This transaction is not only significant by its proportions, but it also sends a very positive signal that the Slovak logistic market does not have to be solely dependent on the companies from the automotive industry starting their operations and growing their business there. To bring such a significant player, its strategic operations and not to mention new important employer to Slovakia, makes our team very proud,” – adds Samuel Šporka, Head of Leasing at JLL Slovakia.
Located near the R1 expressway, the PNK Park SEREĎ has convenient and easy access to Bratislava (55 km) via D1 highway and good road transport links to Austria, Hungary and the Czech Republic. Besides two ready-made facilities, the park will consist of three buildings with a total area of 227,000 sq. m. which are suitable to be used as warehouses, distribution centers, and for light industrial purposes as well. The buildings are made entirely of reinforced concrete frames. The industrial facilities have a BREEM pass certificate and comply with FM Global international property insurance standards.
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About LPP SA
LPP SA is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collections already on 24 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of 1,760 stores with the total area of over 1 million sq.m. and operates online stores in 12 European countries. On the basis of a global supply chain, the Polish clothing producer distributes over 200 million pieces of clothing to three continents. LPP plays another important role as it employs over 25 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.
About PNK Group
PNK Group offers a full implementation cycle for turnkey industrial facilities both on the client’s premises and in PNK industrial parks. The company has been operating since 2004 and its portfolio consists of 29 industrial parks in Europe, Russia, and the USA with a total area of the facilities commissioned and in various phases of construction amounting to over 5 million sq m.
About the PNK Park SEREĎ – see https://pnk.group/park/sered.html
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 90,000 as of December 31, 2018. JLL is the brand name and a registered trademark of Jones Lang LaSalle Incorporated. For further information, visit jll.com. JLL Slovakia was established in 2006. Currently, it provides services in the field of investment consultancy (capital markets), valuation, research, land investment and development, leasing of office, industrial and retail space as well as the services in the field of property and project management. JLL’s Capital Markets team has the largest track-record by the number of deals and investment volume from all the agencies on the Slovak market. In the last 12 months, JLL represented its clients in property transactions worth more than Eur 325 mil.