Skanska sells Nowa Fabryczna office building in Poland to Niam for €52 million
Skanska has sold Nowa Fabryczna building in Lodz, Poland, to Niam, the real estate fund manager. It is the developer’s second office project in the city, and the seventh Skanska property Niam has acquired in the Polish regional markets since 2015.
Nowa Fabryczna in Lodz’s New City Center was completed in the second quarter of 2017. The building offers over 22,600 sqm GLA and is leased to prestigious international tenants such as Fujitsu, Whirlpool, Cybercom and McCormick. Skanska's third development in the city – Brama Miasta – is currently under construction.
“The Nowa Fabryczna sale is the third transaction we have made with Niam in Poland's regional markets since 2015. Lodz is a great example of a city focused on business growth which is illustrated by the record breaking number of building permits issued in 2017. This attracts FDIs and reflects the high office space demand and absorption,” says Adrian Karczewicz, Head of Divestments at Skanska’s commercial development business in CEE.
Investors who already own assets in CEE appreciate the region and very often decide to come back for more.
“We are happy to acquire another high-quality office building in Lodz’sattractive new city center. We are confident that this building will complement our fund’s portfolio with strong cash flows and risk-adjusted returns,” adds Fredrik Jonsson, Niam CEO.
The CEE market is seeing increasing interest in office projects with global capital continuing to flow into the region.
“Last year Skanska sold seven buildings for over €360 million. We leased 145,000 sqm of space in ten CEE office markets, a 10 percent increase on 2016. Our top quality office assets are underpinned by leasing agreements signed with high-quality tenants. This kind of product matches the needs of the most demanding investors, such as Scandinavian funds,” adds Katarzyna Zawodna–Bijoch, President and CEO of Skanska’s commercial development business in CEE.
The Nowa Fabryczna project is expected to receive LEED Gold certification. It will also be certified as a “Building without barriers” for its accessible design and inclusiveness for people with disabilities. It is located opposite the recently completed state-of-the-art Lodz Fabryczna train station – the third largest railway station in Europe.
During the sales process, Colliers with Cushman&Wakefield acted as the exclusive agent for Skanska. Legal advisers for the transaction were Linklaters for the purchaser and Dentons for the vendor.