EPP and Henderson Park have purchased the third building and are now the owner of the whole O3 Business Campus office complex located in Krakow. The joint venture between the two partners has acquired the final remaining office building in the location for EUR 47.2 million from Echo Investment.
The sale of the third building in the O3 Business Campus office location is the result of a preliminary agreement signed in 2016 in which EPP purchased 7 office buildings from Echo Investment with a total lease area of 112,000 sqm. Two of the three buildings in the O3 Business Campus became part of EPP’s portfolio in 2016 and 2017. In June 2019 they became part of a portfolio owned by a joint venture between Henderson Park and EPP with each holding 70 percent and 30 percent of shares respectively. Now, the joint venture’s partners have purchased the third building.
“The high quality of the O3 Business Campus buildings and Krakow’s strong position as one of the most dynamically developing cities to locate businesses in the CEE region, make the complex an ideal investment for the designated owner. The sale of this building is one more step in carrying out our strategy of profitable growth according to which Echo Investment is focusing on property development,” explains Nicklas Lindberg, the CEO of Echo Investment.
“Control of the final remaining building of the O3 Business Campus complex will allow us to maximize benefits from our management services, as a modern office property in such a great location guarantees good revenues and a strong return for our shareholders,” says Hadley Dean, CEO of EPP.
The third building of O3 Business Campus complex occupies an area of 18.9,000 sqm and is currently 73 percent leased. Its office space is inter alia occupied by the Polish operator of serviced offices City Space, the LUX MED medical centre and EPAM Systems Poland. Recently, additional leasing contracts were signed with Danish Crown (1,725 sqm) and Mota Engil (2,725 sqm). Talks about additional rentals are in the advanced stage.
The modern O3 Business Campus office property complex managed by EPP and built by Echo Investment consists of three 12 floor class A buildings with underground parking, whose total lease area is 57,000 sqm. The investment is located in the northern part of Krakow, near Opolska and 29 Listopada streets.
