Globalworth buys Krakow office complex
Globalworth has signed agreements with Podium Investment Poland to acquire Podium Park in Krakow. Podium Park comprises three connected 11-storey buildings which will, on completion, have a total leasable area of over 55,000 sqm, and it is one of the few office projects in Poland with BREEAM certificates at the highest possible level - Outstanding.
The first building in Podium Park was completed in Q4 2018 and has around 18,500 sqm of GLA. The second and third buildings, which will add a further 37,000 sqm to the park, are under construction or to be constructed, with completion scheduled for Q4 2020 and Q4 2021, respectively. The company has signed a development management agreement with the seller in relation to the construction and completion of the second and third buildings at Podium Park.
The maximum transaction consideration for Podium Park has been set at €134 million, with the final consideration to be determined based on the leasing status of the second and third buildings at completion and after customary deductions. The annual contracted rent at Podium Park upon completion of the development is expected to be approximately €9.6 million.
Dimitris Raptis, Deputy Chief Executive Officer and Chief Investment Officer of Globalworth commented: "The acquisition of Podium Park, one of the most modern and ecological office projects in Poland, marks the completion of the investment pipeline in Poland which we announced on 1 October as being under exclusivity. As such, we are continuing to add critical mass to Globalworth's presence in Warsaw and Krakow, which should enable the company to maximise asset management synergies and benefits of scale."
Lukasz Duczkowski, Head of Investments - Globalworth Poland, added: "The transaction with Podium Investment provides a very strong end to the year for Globalworth. In 2019, we have acquired five office projects in Poland which are expected to have a combined value of around €590 million once development components of these acquisitions have been completed."
During the sales process, Globalworth was advised by Avison Young and KPMG, while Podium Investment was advised by BNP Paribas. Legal advisers for the transaction were GT for the purchaser and Dentons and Kancelaria Adwokacka Marcin Imiołek for the seller.