GERMANY - Specialist Frankfurt-based property investors, DEGI, has acquired the Marynarska Business Park in Warsaw for €167m, as well as expanding its presence in Frankfurt.

The move to purchase real estate in Poland is in line with DEGI's strategy to expand further into Eastern Europe and follows its second investment in Prague for €57m in August.

The Park will added to DEGI's - part of leading UK asset management group, Aberdeen - DEGI International fund, an open-ended mutual investment vehicle that targets international commercial properties.

DEGI claims more than 99% of the acquisition has already been let to both Polish and international tenants, which operate mostly in the services industries.

Bärbel Schomberg, chief executive officer at DEGI, said despite general doom and gloom around Europe, Eastern European property markets represent good investment potential.

"With the Park, we have acquired another profitable property in the biggest growth market of the EU's Eastern European member states. This investment supports the strategic expansion of our portfolio, as well as its profitability," he commented.

"Poland is one of Europe's fastest growing economies with a gross domestic product in excess of over 6% in the past two years. The increase in rental values in Warsaw, the capital, exceeded this figure in 2007," he continued.

The deal is not the only purchase DEGI has made in the past week as it also expanded its domestic portfolio with the acquisition of a fully-let commercial building in Frankfurt's main retail street for a consideration of more than €30m. The building will be added to DEGI's DEGI Europe Retail, a specialist fund for institutional investors that targets the European retail sector.

Despite recent warnings of recession causing pessimism among Germany's property investors, DEGI is not fazed and sees Germany's business capital as a logical choice for further expansion.

"Frankfurt is not only Germany's undisputed financial hub, but together with London and Paris, it is the most important European financial centre. This assures long-term prospects for the investment," said Schomberg.

"Its airport heads the rankings in Continental Europe in terms of freight and passenger figures. This enormous commercial strength is also reflected in Frankfurt's shopping districts. For this reason, we see a high potential for good future performance," he added.

Both deals will add considerable value to the firm's existing €6bn assets under management.