Azora Europa has sold two office projects located in Krakow, Green Office and Avatar, to Cromwell European Real Estate Investment Trust (CEREIT) for €78.2 million. Savills advised the vendor on the disposal of both assets.
Green Office is a complex of three office buildings totalling 22,300 sqm. It is located in Czerwone Maki Street in Krakow, with Motorola Solutions and UBS Business Solutions as main tenants. Avatar located at Armii Krajowej Street in Krakow offers 11,200 sqm of office space. The entire building is let to BNP Paribas bank.
“The sale of our Kraków assets in the current market situation and after successful asset management activities was planned in accordance with our long-term strategy. Since its acquisition Azora has made improvements in the buildings and extended the lease agreements including the latest successful lease extension with Motorola Solutions. I believe Avatar and Green Office are an ideal investment product for a dividend oriented CEREIT,” says Anna Szelc, representing Azora Europa in Poland.
“These buildings complement the CEREIT portfolio, being fully occupied assets with stable income. Located in Krakow, one of Poland’s major cities with some of the best infrastructure in the country, they are well placed to benefit from the country’s favourable economic conditions and robust office market. Poland’s office property market currently offers more attractive yield spreads compared to those available in many other European countries as the persistent supply demand imbalance puts upward pressure on rents for quality space,” says Karol Pilniewicz, Head of CEE at Cromwell.
It is another investment transaction by Azora Europa in Poland in which Savills is participating. Previously, in 2018 the adviser represented Catalyst Capital in acquisition of Harmony Office Center from the fund and in June 2019 Savills supported M7 Real Estate in purchasing Cristal Park and Mokotów Plaza office buildings.
“Both assets are fully let and are a great example of attractiveness of the office market in regional cities in Poland. We are very happy and proud that after two recent successful transactions made by Azora Europa during which we repressed the buyer, we had a chance to advise the fund on the disposal,” says Marek Paczuski, Deputy Head of Investment, Savills Poland.
Azora Europa was advised by Savills (investment agent), Greenberg Traurig (legal adviser) and Gleeds (technical adviser).
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