WARSAW-In further signs of an industrial market surge in Eastern and Central Europe, Pramerica Real Estate Investors and Panattoni Europe have formed a venture to create a portfolio of up to $139 million in class A logistic warehouses in Poland, the Czech Republic and Slovakia. Panattoni Europe is based in London, and Pramerica is a division of Prudential Financial, based in Newark, NJ.

The venture has already closed about 344,000 square feet of a preleased seed asset in Poland, according to a Pramerica statement. The venture is also pursuing three other Poland assets totaling more than 484,000 square feet. The venture is looking for assets that have a minimum of 110,000 square feet, usually with at least 50% of the property preleased before construction begins, but speculative projects possible.

About 65% of the assets will be in Poland, as there is continuing demand there from occupiers for logistics space, as well as in Central and Eastern Europe, according to Max Kreuter, Pramerica portfolio manager. The investment will take place during the next 18 months.

This is the second venture in Poland by the two firms, after a JV that oversaw the development of 11 buildings totaling about 2.6 million square feet in the country. The two firms also work together in the Czech Republic; in July, Panattoni Europe, in cooperation with Pramerica, became the property manager of more than 600,000 square feet at Airport Logistic Park near Prague International Airport. The park consists of three warehouse buildings, and it is 70% leased.

Robert Dobrzycki, managing partner for Central Europe at Pannatoni, said that the two companies work well together. “With Pramerica we plan to develop a large number of new projects, which are mostly build-to-suit investments, but may include a speculative element,” Dobrzycki said in a statement.