Warburg-HIH Invest acquires office property in Poland
Warburg-HIH Invest Real Estate (Warburg-HIH Invest) has acquired an office scheme located in the Polish city of Krakow within the framework of an individual mandate for an institutional investor. The transaction was structured as an asset deal, the asset being sold by the Polish property developer Grupa Buma.
The high-quality office scheme, completed in 2016, is located in the new Central Business District close to the historic town centre of Krakow. Office developments in this location and the expansion of the ring roads for the purpose of optimising the transportation access will upgrade the area even further.
The property at Aleja Pokoju 5 has nine upper storeys and a gross lettable area of 13,694 sqm. Due to the flexible structure, the layout options permit up to four units on each floor. The property is BREEAM certified (“very good”) and equipped with a smart building automation system that ensures a high degree of energy efficiency. The building's 163 underground parking spots are supplemented by 27 surface parking spots.
The multi-tenant property is currently occupied by 13 different tenants, and shows an occupancy of 83 percent. The majority of tenants represent globally active groups from a variety of industries. The average remaining lease term is approximately six years.
“Poland is the country with the fastest economic growth in Europe, and is predicted to keep growing at an annual rate of 3.5 percent through 2018. Due to a growing number of office jobs, there is a shortage in office accommodation despite a high number of construction projects. It is in this environment that the office scheme at Aleja Pokoju 5 presented a sustainably attractive investment opportunity,” said Andreas Schultz, Managing Director at Warburg-HIH Invest and in charge of the Transaction Management International division.
Krakow is Poland's second largest city and has a very large student population. The ready availability of well educated graduates and the low wage level have attracted a number of international companies, and turned Krakow into one of the “top outsourcing locations” in the world.
Jan Schwarz from MF Capital advised the buyer. Legal counsel to Warburg-HIH Invest was provided by Hogan Lovells Warsaw, whereas the tax due diligence was undertaken by TPA Horwath Sztuba Kaczmarek. In technical matters, the buyer was advised by cmT construction management team.