Lion’s Head Investments has entered the Romanian logistics market with the acquisition of a 155,000 sqm land plot in Popești-Leordeni, near Bucharest. The company, a joint venture between AG Capital and Old Mutual Property, plans to develop an 85,000 sqm logistics park on the site, with construction set to begin in the first half of 2025.

The project is part of Lion’s Head’s broader expansion in the region following its entry into the Bulgarian logistics market last year.

In 2024, the International Finance Corporation (IFC), a member of the World Bank Group, invested EUR 150 million into Lion’s Head’s logistics projects in Romania and Bulgaria, aiming to enhance sustainable warehousing infrastructure. 

Alina Necula, Country Manager Romania at Lion’s Head Investments, stated: “The development of sustainable logistics facilities in Romania has remarkable potential as more and more companies are seeking environmentally friendly, self-sufficient, and cost-efficient solutions. At Lion’s Head, we recognize the opportunity the market offers, and with this acquisition, we begin the diversification of our portfolio in Romania.”

“Last year, we took a significant step by entering the Bulgarian logistics market, by acquiring a logistics platform operated by a high-performance team, which placed Lion’s Head as the second biggest owner of logistics properties in the country. We are excited to expand our logistics portfolio in Romania by developing projects that meet the highest standards and requirements of international tenants,” said Vladimir Gurdjieff, Director Logistics & Industrial properties at Lion’s Head Investments.

The future Class A logistics park will incorporate modern infrastructure and sustainable construction methods, including the use of environmentally friendly materials and flexible space concepts designed to accommodate various industries, the company said. Advanced technology will play a key role in improving safety, energy efficiency, and operational costs. 

All of the pre-development works are already done, and the next step is obtaining the building permit and initiating construction.

The land acquisition was facilitated by real estate consultancy Cushman & Wakefield Echinox, while legal services were provided by the Romanian law firm Peli Partners.

According to Cushman & Wakefield Echinox, the industrial and logistics market in Bucharest continues to experience rapid growth. By the end of 2024, the total stock of industrial and logistics spaces in the Bucharest-Ilfov area exceeded 2 million square meters, with an occupancy rate of over 95%.

The increase in domestic consumption and the expansion of e-commerce have driven demand for modern logistics spaces, making Bucharest an attractive destination for both international and local companies.

Lion’s Head is a real estate investment and asset management platform focused on prime office and logistics properties in the CEE region. Its portfolio includes five class-A office buildings in Sofia and Bucharest, and three logistics parks in Bulgaria, with total area of 445,000 sqm.

irina.marica@romania-insider.com

(Photo source: the company)