Lion’s Head: Lion’s Head (will) buy logistics parks in Bulgaria, Poland and Romania

Vladimir Gyurdzhiev, Group Director “Logistics Projects” at Lion`s Head, “Business Start”, 25.04.2024

The acquisition of BPD’s logistics business by Lion’s Head is part of the company’s long-term strategy to enter the segment in Bulgaria and expand in Poland and Romania. The €71.4m deal is for BPD’s three logistics parks in Sofia, Varna and Ruse, with Lions’ Head planning to expand the complexes in Varna and Ruse and has earmarked funding for this. That’s what he said Vladimir Gyurdzhiev, Group Director “Logistics Projects” at Lion’s Head, in the “Business Start” show with host Hristo Nikolov.

“This transaction is the first step for Lion’s Head in our long-term strategy to enter the segment for logistics and industrial areas… Plans include the completion of the locations in Varna and Ruse, including the addition of new ones in Bulgaria and the region.”

The company aims to build a platform of logistics properties in Bulgaria, Romania and Poland and is in “quite advanced talks” about acquisitions in Romania and Poland, Gyurdzhiev said.

The expected rental income from the BPD parks is between BGN 10 and 14 million depending on the year, and this is a starting base that we will continue to develop, said Gyurdzhiev. “We are acquiring not only the three assets, but also the brand and the team of the company, which we will continue to work with, and this gives us quick access to the market from a market presence perspective.”

Industrial and logistics areas are proving to be one of the most resilient business property segments in Europe and this trend is continuing. In Central and Eastern Europe there are extremely good results such as annual growth, stability of tenants and rents. “We strongly believe that the segment will continue to be one of the most stable, and our strategy includes quite serious investment in this direction.”

In countries such as Romania and Poland, the segment generated the most deals, while the dynamics in Bulgaria were weaker than expected, probably due to the effect of the war in Ukraine and competition from Poland and the Czech Republic, which are closer to the main European markets , commented Gyurdzhiev.

“The foundations in Bulgaria have been laid and there are many areas that are developing in the right direction… and countries like Bulgaria will play an important role for companies that want to move their production to the periphery of the main markets in Western Europe.”

You can watch the whole conversation in the video.

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