PPF Real Estate Holding has entered the Polish market with the acquisition of New City, a prime business park in Warsaw. Poland and the United States are the new commercial property markets where PPF Real Estate Holding has begun operating this year. The company owns properties also in the Czech Republic, Netherlands, Romania, the UK, Germany and Russia.
The seller of New City office complex was a fund owned by Hines, an international real estate firm. PPF Real Estate has enjoyed long-term cooperation with Hines and purchased several properties from the fund, including London’s Westferry Circus office building and Moscow’s Metropolis office centre.
The parties have agreed not to disclose financial details regarding the New City transaction in Warsaw.
Located in Warsaw’s Mokotów quarter, the New City office complex is in close proximity to Warsaw Chopin Airport and significant recent investments in the local transport infrastructure have transformed this area into a sought-after office location.
New City offers eleven floors of Class A offices, with a total of 45,000 sqm of leasable premises for tenants. New City’s major tenants include global pharmaceutical companies Novartis, Bausch Health and US/Swiss eye care specialist Alcon. Other New City tenants include a Polish subsidiary of Burda publishing house and major local marketing and advertising agencies. New City was designed to be sustainable and emphasizes maximum energy efficiency. The scheme holds a BREEAM certificate.
“The Warsaw real estate market is booming, being one of the most liquid in Central and Eastern Europe. We thoroughly assessed the location, and despite the local market not having avoided the coronavirus pandemic’s adverse economic effects, New City has shown a high degree of stability compared to other office centres,” says PPF Real Estate Investment Manager Jiří Sýkora, overseeing the Polish acquisition.
“After our recent entry into the US market, I’m glad the geographic diversification of our assets continues in Europe which is also a very important part of our overall portfolio,” says PPF Real Estate Executive Director Jiří Tošek.
