Globalworth Real Estate announces €170m Poland deals – In a further sign of strength in the Polish economy, Globalworth Real Estate (GWI) has completed two deals in Poland, which were identified, for a combined €169.9m. The deals are being carried out by GWI’s Polish subsidiary.
Key takeaways from the two deals:
Warsaw trade tower
- Acquired for €132.9m
- Warsaw trade tower (WTT), a 38-storey tower located in the wola district of Warsaw’s extended business district. It is one of the tallest towers in Warsaw, with a gross leasable area of 45.4k square meters, and benefits from the lobby and the majority of the common areas having been fully refurbished
- With current occupancy of 88%, it has an annualised contracted rental income of €9m, which is anticipated to rise to €10.1m on full occupancy. The property is multi-tenanted, with a weighted average lease length of 2.2 years, with AXA as the largest tenant alongside other international companies including American Express, Leroy-Merlin and Mattel
Rondo business park
- Acquired for €37m
- Rondo business park (RBP) is located in the northern part of Krakow. It offers a gross leasable area of 17.8k square meters across three buildings, current occupancy of 90% and an annualised contracted rent of €3m
- The park is is multi-tenanted with a weighted average unexpired lease length of nearly 4.5 years, with Capgemini as the principal tenant
CEO’s view
Dimitris Raptis, deputy CEO and chief investment officer of GWI, commented: “We are delighted to add WTT, a prominent landmark office tower, to our Polish portfolio at a compelling entry price, offering an attractive yield and a range of asset management opportunities. The acquisition of RBP in Krakow has sound strategic rationale, being located alongside our quattro business park and creating management synergies through an enlarged footprint. We are very pleased to be increasing our office presence in Krakow to over 100k square meters, given the backdrop of strong occupier demand arising from its position as the largest business process service centre in Poland and one of the largest in Europe.”
About GWI
GWI is one of the largest office investors in the CEE real estate market through its positions both in Romania and in Poland, where the company has a majority shareholding in Globalworth Poland, a pure-play Polish real estate platform listed on the Warsaw stock exchange. Globalworth acquires, develops and directly manages high-quality office and logistics/light-industrial real estate assets in prime locations, generating rental income from high quality tenants from around the globe. Managed by nearly 200 professionals across Romania and Poland, the combined value of its portfolio is €2.5bn, as at 31 December 2018. Over 90% of the portfolio is in income-producing assets, predominantly in the office sector, and leased to a diversified array of some 650 national and multinational corporates. In Romania, Globalworth is present in Bucharest, Timisoara and Pitesti, while in Poland its assets span Warsaw, Wroclaw, Lodz, Krakow, Gdansk and Katowice.
GWI: Globalworth Real Estate announces €170m Poland deals