Hines Poland Sustainable Income Fund acquires Ambassador office building
Hines, the international real estate firm, has announced that the Hines Poland Sustainable Income Fund (HPSIF) has acquired the Ambassador office building in Warsaw from Kronos Real Estate. The building and further properties acquired by HPSIF will be served by Hines Poland as Asset Manager and Property Manager on behalf of the fund.
The Class A building completed in March 2013 offers 14,900 sqm of modern office space and 1,000 sqm of retail space on the ground floor. The Ambassador Office Building is located at the junction of Domaniewska and Pecherska Streets, in the rapidly developing business district of Mokotów. Among current office tenants are internationally recognized companies such as Coty Poland, Gras Savoye (Pol-Assistance), DSV, Ipsos and CBRE Corporate Outsourcing.
“The purchase of Ambassador is the first transaction completed by the HPSIF fund. The strength of the tenants and the quality of the asset make the Ambassador an attractive acquisition for the portfolio,” said Leo Chen, Senior Managing Director and Fund Manager of HPSIF. “We intend to continue our expansion on this attractive investment market,” – added Chen.
One of Warsaw’s biggest shopping centers, the Galeria Mokotow, is situated in close proximity to the building. The Ambassador's strategic location offers excellent transport links to all areas in the city by both private transport and public transport network. Another advantage of the investment is that it’s positioned near the Chopin Airport. Tenant parking is located on four underground floors and provides a total of 298 spaces.
“We are pleased that HPSIF made this purchase and hope that Hines Poland will be an active and important player in the Polish market over the next several years,” added Mieczyslaw Godzisz, Senior Managing Director of Hines Poland.
Alberto Esgueva Gutierrez, the President of Kronos Real Estate commented, “Ambassador Office Building was the first completed investment of Kronos in Poland. We are very happy that we delivered this high-quality product to the market, which was highly appreciated by tenants, so the building was fully commercialized. We are glad that Hines decided to buy the building. It is a very important message to the market that demonstrates the value of Kronos. Currently we focus on another project at Domaniewska, Pacific Office Building.”
The Ambassador building is currently undergoing the BREEAM certification process. According to the Hines principles, sustainability is not a single program or initiative, but rather the outcome of efforts across the organization. Fundamental in this undertaking is the definition of sustainability, which encompasses not only actions to improve the physical object, but also the people and places impacted by our business. Hines provides the highest standards of service to investors, customers and tenants through experience in efficient management of facilities and involvement of the Hines staff.
Tomasz Sasin, Sustainability Manager Hines Polska said, “One of the most interesting issues will be the active involvement of tenants in the process of improving the sustainability of the building through education, dialogue and the provisions in the agreements. With our experience in property management and the commitment of our tenants, we anticipate being able to increase the level of the sustainability.”
During the transaction, Jones Lang LaSalle has represented the buyer, while CBRE represented the seller.