LC Corp SA has closed the sales process for the Katowice’s Silesia Star and the Wrocław Retro Office House. The new owner of the two office buildings is Globalworth Poland Real Estate group. The final €113.175 million contract was signed on 19 July. It is LC Corp’s first sale of commercial property ever. The process is part of the company’s new strategy for office buildings.
“The closing of the sales process for Silesia Star and Retro Office House is yet another milestone for LC Corp. This is our first sale of office buildings ever and is part of our new strategy for office buildings, a move from keeping properties within our portfolio to selling fully rented, well-functioning venues in major Polish cities,” says Dariusz Niedośpiał, President of the Management Board at LC Corp SA.
“We are very happy to have gone from signing the letter of intent to closing the deal in such a short time. The buildings we have just sold are some of the most prestigious venues in Katowice and Wrocław, with offices of major brands such as Olympus, Infor, PKO BP and Mentor Graphics,” adds Tomasz Wróbel, Member of the Management Board at LC Corp SA.
Located at the heart of Katowice, Silesia Star is an A-class property composed of two buildings with 27,000 sqm of total floor area. Starting from 2016, the compound has enjoyed a stable 100 percent occupancy rate. Some of its tenants include the European R&D centre for Mentor Graphics. Silesia Star has been sold for over €54.3 million.
The prestigious office building located at the centre of Wrocław, Retro Office House shows a truly modern style. The 21,000 sqm of available floor area were rented within 6 months of the building having been commissioned. The building’s tenants include a shared services centre for Olympus’s European, Middle East and Africa operations. Globalworth acquired the property for €58.8 million.
“We want to improve and enlarge our offering for the tenants and communities of our buildings in regional cities by adding high-quality property to our portfolio. Retro Office House and Silesia Star are modern, office buildings with great locations in Wrocław and Katowice. They are a great addition to our Polish portfolio, now comprising 21 properties with 560,000 m2 of total floor area,” comments Łukasz Duczkowski, Investments Director at Globalworth Poland.
The sales deal has been handled by the law firm Dentons and the consulting firm Knight Frank.
“We are proud to have helped LC Corp with its first sale of a commercial property ever. The deal fits neatly in our client’s new strategy and shows that the investment activity and investors’ interest are high in regional markets, too. We have completed the whole sale process with the full commitment from all teams of LC Corp and Globalworth in a very effective and timely way,” says Marcin Purgal, Capital Markets Director at Knight Frank.
“It was an important transaction in the local office property market. The investment dynamics in Wrocław, Katowice and other regional cities is on the rise,” sums up Bartłomiej Kordeczka, the Property Partner at Dentons.
“We greatly appreciate both parties’ collaboration as well as their professional conduct. This has helped us successfully complete the process,” adds Maciej Jodkowski, the Counsel at the Dentons’ Property Department.
LC Corp’s office property portfolio still includes Wrocław’s Sky Tower and Arkady Wrocławskie as well as Warsaw-based Wola Center and Wola Retro, the latter to be granted its occupancy permit later this month.
“Our properties attract attention both from tenants and major players of the investment market, who are on the lookout for prestigious office venues across Poland. As early as the design stage for each of our commercial buildings, we prioritize originality, innovation, functionality and good locations. Our investments are always marked by great design, recognized with numerous industry awards. We deliver our buildings and create urban space responsibly. The deal with Globalworth shows that the investors appreciate these efforts,” says Piotr Pirogowicz, the Director for Commercial Property Management at LC Corp SA.
