The players that define the logistics market in Greece

The demand for modern and energy-efficient logistics facilities in Greece has been constantly increasing lately, where either major retailers or companies related to transportation are looking for their new storage facilities.

Data from Cushman & Wakefield Proprius show that in Q2 2023, an investment volume of €50 million was recorded in the logistics sector, 25% higher year-on-year, despite a further increase in interest rates by the European Central Bank last June, confirming investors' interest in acquiring new assets. Notable transactions include the acquisition by Trastor SA of a 30-acre parcel of land in Aspropyrgos, where a 23,800 square metre state-of-the-art logistics centre is being constructed.

For its part, Premia Properties SA has acquired a logistics facility of 11,300 sqm in Aspropyrgos, which was granted to an international tenant to be completed by October 2023. Autohellas increased its shareholding in Trade Estates of Fourlis Group by EUR 6 million, contributing a 16,655 sqm warehouse complex on a 40-acre plot in the Business Park of the Vamvakia area of the Municipality of Elefsina. Transcombi Express acquired within the second quarter of 2023, a new 10,000 sqm logistics centre with the right to expand by an additional 6,000 sqm.

The volume of demand in logistics is particularly high and it is estimated that a total of approximately 120,000 sqm of industrial and logistics space has been absorbed in the first half of the year in Attica and an additional 80,000 sqm will be delivered by the end of 2023 with 95% already pre-leased. For their part, tenants are becoming increasingly demanding, both in terms of environmental performance and technology. Base rents are not expected to show significant further increases in the short term and stand at around EUR 5 per square metre in Athens and EUR 4.25 per square metre in Thessaloniki. Demand from interested tenants is mainly driven by logistics, transport and manufacturing companies.

US-based HIG is a dominant force in logistics

A prominent force in this sector is also the American HIG, which is active in the logistics sector, with 6 companies that it has acquired since 2020. In particular, it has acquired successively in our country the companies Makios S.A., Olympias-Candyllis, Beinoglou S.A., Group Unit Hellas, Unit Shipping and Contrade S.A. The aim is to consolidate these companies under the operating platform Logistics-Streem Global S.A.

In the near future it intends to strengthen its position in the freight transport and last mile sector, thus vertically integrating its presence in the supply chain industry. We will remind you that HIG is represented in Greece by Inventio, which is essentially the fund's asset manager and already carries out distribution and delivery of products for large retailers in products such as large electrical appliances and refrigerated products – food.

HIG also operates in the courier sector through its courier company, Easy Mail, which is owned by Beinoglou S.A., the logistics company acquired during 2022. In this sector, the fund is looking at growing Easy Mail, with the aim of becoming a force to be reckoned with in courier services. It is also notable for serving customers in the e-commerce sector.

However, the largest of the investments the fund is making is in the land it has acquired from Hellenic Halyvourgia, which will be transformed into a standard international transport and storage centre (by train, ship, truck-trimodal). This investment is worth EUR 300 million.

The Fourlis Group and the central warehouses of Kotsovolos

Trade Estates of the Fourlis Group has recently become a leading player in logistics. One of the investments being implemented by the Fourlis Group concerns the creation of a new logistics center in Elefsina, where it has acquired through its subsidiary company Trade Estates, 50% of the company Rets S.A., which wholly owned the property, while the remaining 50% remains in the ownership of the Tsigaridis family (Rets). A relevant preliminary agreement has been concluded to house the central warehouses of Kotsovolos.

The strength of Prodea

A dominant force not only in the real estate market with a portfolio under management worth around €3 billion, but also in the logistics sector is Prodea Investments. One of its latest deals in 2023 was to acquire a logistics centre in Aspropyrgos for €38.1 million, acquiring all the shares of Thetis Estate-Commercial S.A. The distribution center is located on a 146-acre plot and has a total covered area of 59,015 sq.m. We mention here that for Prodea, 4% of its total portfolio is occupied by logistics.