WOOD & Company, a leading investment bank in CEE, acquired for its real estate fund, BBC 1 and BBC 1 Plus, an office complex with 25,500 sqm of gross leasable area in Bratislava’s central business district, from Austrian real estate group CA Immo.
With this acquisition, WOOD & Company continues to expand its real estate portfolio in Slovakia and the Czech Republic. The group manages its real estate assets through two real estate sub-funds (the Office sub-fund and the Retail sub-fund), which are open to qualified investors. The BBC 1 and BBC 1 Plus buildings are becoming part of the Office sub-fund.
“This acquisition strengthens our position in the office property market and our presence in the Bratislava central business district where we also own the BBC 5 office complex. The BBC 1 and BBC 1 Plus are LEED Gold certified buildings and offer fully flexible office space suitable for tenants of all sizes. In addition, the buildings have development potential that will add to their attractiveness in the future,” commented Martin Šmigura, WOOD & Company Investment Director.
The sale of both buildings is in line with CA Immo’s long-term plan. As part of its ongoing divestment strategy, the Austrian group is disposing of selected assets outside its core investment markets, reinvesting the proceeds in the development of new projects and other external acquisitions. Over the past three years, the group has left several European countries besides Slovakia, namely: Slovenia, Bulgaria, Russia, Ukraine and Croatia; while, in other countries (Hungary, Romania and Poland), it has discontinued its activities outside their capitals.
The BBC 1 office complex in Prievozská Street provides 25,500 sqm of gross leasable area. The BBC 1 Plus building was completed in 2012 as an extension of the existing BBC 1 facility, bringing to the market 15,900 sqm of leasable area, spread over 13 floors of grade-A+ office space and an underground car park. Hailed as the first green office building in Bratislava, BBC 1 Plus was also the first building to be awarded a LEED Gold certificate. Based on international criteria, the sustainability certificate demonstrates that the building meets the standards of environmentally-friendly and energy-efficient operations. Situated close to the central bus station, BBC 1 features a convenient location in the capital and has excellent transport links with both Bratislava Airport and the historic centre.
“Since March 2020, investment activity has been defined by uncertainty, a wait-and-see approach and, oftentimes, the postponement of transactions. This has resulted in a year-on-year volume decline of 20-30 percent across the whole of Europe, including Slovakia. The sale of BBC 1 and BBC 1 Plus buildings is the first major transaction in the office sector in Bratislava since the outbreak of the pandemic. As such, it represents a milestone in investment activity and in-office segment transactions expected in Slovakia in 2021,” added Rudolf Nemec, Head of Investment Consulting Team at JLL Slovakia. Law firm Bartošík Šváby s.r.o. acted as a legal advisor to WOOD & Company in connection with the transaction.