Korean investor Eugene Investment & Securities has acquired an office building in Warsaw with a total rental space of 10,000 sqm from PATRIZIA AG. The FENIKS is located in Wola and is 85 percent leased to the “BOS” environmental bank. Other tenants include a supermarket, a drugstore and a coffee shop. The FENIKS was built in 2012 and received a BREEAM “Very Good” certificate last year. The parties have agreed to maintain discretion concerning the purchase price. Warburg-HIH Invest Real Estate, the Korean asset manager JR AMC as well as Savills (Technical and Commercial advisory), EY (Tax and Structure) and Greenberg Traurig (Legal advisory) advised Eugene Investment & Securities on the purchase.
“FENIKS is strategically located between the traditional CBD and the new financial and service district of Wola. This is precisely where the city is growing together,” says Matthias Brodesser, Head of Transaction Management International at Warburg-HIH Invest. “Warsaw is a vibrant market from many angles. This dynamism has a lot parallels that we have seen on evolving Berlin in the past. And this is exactly where we see the city in the next years ahead. We will continue to grow our portfolio here.”
“We see our investment in the Warsaw office market as a proxy for capturing growth in one of EU’s fastest growing economies. MNCs should continue to expand office space in Warsaw benefiting from the breadth of skilled labor and lower costs. We are eager to see Wola district’s continued expansion solidify its standing as the new CBD of Warsaw in the near future,” says HK Kim, Managing Director at Eugene Investment & Securities
“With yields in Western Europe breaking historic records, the CEE has become a very appealing substitute whereby high yields can still be achieved, simultaneously minimizing any trade-off in building quality or macro risk profile. We are convinced Poland, and especially its capital, Warsaw, is a perfect example of such a destination and moving further ahead, strongly growing to become serious competition to traditional Western European cities. We are happy Eugene share this vision and honored to manage their first real estate investment in Europe,” Hyon Suk Jang, Managing Director at JR AMC added.
