Hines is acquiring a 34,000sqm office in Warsaw, on behalf of the Hines European Value Fund (HEVF 1).

The Wola Center has been sold by Polish property company Develia, listed on the Warsaw Stock Exchange, for an undisclosed price.

It is the eighth investment for HEVF 1, the core-plus/value-add fund, for which Hines raised €721m between July 2017 and August 2018.

Wola Center comprises four interlinked buildings around a central atrium and is located in the heart of the CBD West, the city’s modern business and retail centre. The building was developed in 2013.

The modern, grade-A office space is currently fully occupied, but will become 70% vacant at the end of 2020 upon the departure of the majority tenant group, providing Hines with the opportunity to refurbish and reposition the building.

Paul White, HEVF 1 fund manager, said: “This transaction epitomises the classic Hines approach to real estate. Our local team on the ground sources and executes an off-market transaction to acquire a high-quality complex in a prime CBD location.

“We believe the asset has clear potential to be a core asset, only given the right finishes and rent roll. The Hines team will execute on the opportunity to add value by upgrading vacated space, moving into rapid lease-up to a new tenant base.”

White said “the pace of our deployment” of the fund has “led us to accelerate the anticipated launch of the follow-on fund”, HEVF 2.

Hines is more than halfway to reaching its €1.25bn fundraising target for HEVF 2 and plans to move into larger portfolio and corporate deals.