November 12, 2014

Skanska sells one of the buildings of Kapelanka 42 complex to REINO Dywidenda FIZ fund

Skanska sells one of the buildings of Kapelanka 42 complex to REINO Dywidenda FIZ fund

Skanska Property Poland has sold one of the two buildings of the Kapelanka 42 office complex in Krakow. The building was acquired by Polish fund REINO Dywidenda FIZ, managed by REINO Partners. Kapelanka 42 is Skanska’s first project developed in Krakow and the second sales transaction of an office building in the last 12 months for the company in Poland. Also, it is REINO Dywidenda FIZ’s first investment target.

Kapelanka 42, comprising two buildings, offers over 30,000 sqm of modern Class A office space. The buildings were completed in Q2 and Q3 of 2014 and their official opening is scheduled for November. The building that was sold offers 11,700 sqm and is almost fully leased to several companies including Tesco, Apriso and Sygnity.

“We are very pleased to establish a new partnership with another investment fund which has 100 percent Polish ownership. In the near future we will see more transactions with Polish capital which will in turn generate healthy competition with foreign investors. In addition, our transaction proves that the commercial real estate investment market extends to Poland's regional cities where Skanska is currently very active. The sale of one of the buildings in Kapelanka 42, which is our first project in Krakow, has been done in accordance with our strategy to develop business in Polish regional cities”, commented Adrian Karczewicz, Transaction Director at Skanska Commercial Development Europe.

REINO Dywidenda FIZ is the first Polish dividend real estate closed-end investment fund dedicated to Polish high net worth individuals (clients of private banking & wealth management). It is hands-on and exit driven investment vehicle set up and managed by REINO Partners, an independent and privately held real estate investment management company. This pioneer solution was prepared and developed by REINO Partners as a dedicated and prestigious investment product for the clients of mWealth Management (formerly BRE Wealth Management), one of the market leaders in private banking and wealth management services. It was a partner since the project’s beginning.

“The transaction with Skanska is the success of REINO Partners proprietary fund, outlining new standards in investing in Polish commercial real estate. Buildings that generate stable income are a natural alternative for deposits, and when interest rates remain low, they should be a first choice for investors retrieving cash from deposits and treasury bonds. At the same time, the best buildings, with a minimal risk level, are unavailable for single investors. Funds such as REINO Dywidenda FIZ serve here as a solution. Due to its location, basic parameters and developer’s reputation, Skanska’s office building in Krakow was a good choice for the first investment target,” commented Radosław Świątkowski, President of the Management Board at REINO Partners.

Skanska Property Poland was advised on the transaction by CBRE international consulting agency. “The sales transaction of building B of Kapelanka 42 underlines the increasing liquidity of the office real estate market in regional cities and proves the growing investor’s interest in the best projects in Krakow. Furthermore, another successful and swiftly conducted transaction proves Skanska’s position as a leading office space developer in Poland,” commented Mike Atwell, Head of Capital Markets, CEE in CBRE.

Legal consultancy for the purchaser was provided by Norton Rose, while Dentons provided legal consultancy for the vendor. The loan agreement was concluded with Nordea Bank Polska.

The simple and elegant Kapelanka 42, conveniently located in the Podgorze district, is a superb place for conducting business in Krakow. The building's flexibility allowing for free space arrangement was designed with the differing demands of tenants in mind. Technologically advanced solutions generate reductions in water and energy consumption as well as minimizing the building’s impact on the environment. The offices with an increased amount of fresh air, comfortable temperature and good daylight access, serve as a perfect workplace. Both buildings will be LEED Gold certified.

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