BlackRock property fund sells Rondo 1 office complex in Poland
The Blackrock Europe Property Fund II, part of BlackRock’s Real Estate business, has sold the Rondo 1 office complex in Warsaw, Poland, to two funds managed by Deutsche Asset & Wealth Management’s real estate business. The transaction price is undisclosed.
Rondo 1 provides high-quality, modern and efficient office space, as well as a high standard of environmental sustainability, confirmed by LEED Gold certificate status and numerous property business awards. The asset is currently 95 per cent let to over 50 multi-national tenants from the financial, legal and consultancy sectors including blue-chip level institutions such as EY, Allen & Overy, Baker & McKenzie, DZP, Frontex, Dentons and Volkswagen Bank.
The BlackRock fund acquired a 50 percent interest in the newly delivered asset in 2006 before assuming full ownership in 2008. Rondo 1 was the largest asset of the BlackRock Europe Property Fund II portfolio and this sale is a significant milestone towards achieving full divestment status.
Marius Schoener, head of BlackRock's German and Polish real estate business, said, "This landmark building is one of the most prestigious skyscrapers in Eastern Europe. Since the acquisition we have increased occupancy to 95 per cent from 50 per cent, enabling the asset to be brought to market for sale. We remain an active player in the Polish real estate market and are considering other opportunities here and throughout the region."
BlackRock Real Estate is the dedicated real estate investment group within BlackRock and invests in strategies across the risk and return spectrum, providing access to all major property types. The business manages over $23 billion of private and public real estate equity and debt on behalf of investors worldwide in 17 offices across 11 countries in Asia-Pacific, Europe and the US. Investment structures include commingled funds, co-investments, joint ventures and customised separate accounts.
Dentons as legal advisors advised the BlackRock Real Estate team on Rondo 1 and HSBC as sell side advisors.