CEE-focused office investor and developer CA Immo has acquired a class A office property in Warsaw from local developer HB Reavis for €87 mln.
The 34,500 m2 property, dubbed Postepu 14, was completed by HB Reavis in 2015 and is 95% let to tenants including AstraZeneca and Samsung Electronics.
According to CA Immo, the headline price reflects a gross initial yield of 7.5% and capital value of € 2,500 per m2. The office generates annual rent of around €6.5 mln.
Keegan Viscius, chief investment officer (CIO) of CA Immo said: 'With the Postepu 14 office building we are buying one of the best assets in terms of quality, tenant covenant and location in one of the most important office submarkets in Warsaw.
'With a day one gross rental income yield of 7.5%, this investment will provide immediate rental income secured by investment grade tenant covenants and a basis that reflects a discount to replacement cost and under rented in place rent. It´s located in a submarket with resilient tenant demand and zero new construction pipeline.'
The building is distinguished by its sustainability credentials including clean energy from wind turbines, cycling infrastructure, an electric vehicle charging station, energy-saving lifts and lighting as well as the use of rainwater to water plants and cool the AC systems.
Hedwig Höfler, CA Immo's head of investment management AT and CEE, added: 'Acquiring one of the most state-of-the-art office buildings in the district of Mokotów is a perfect exposure for us in this strong submarket.
'Postepu 14 meets highest sustainability standards and supports our transition to low-carbon, sustainable business operations.'
Advisors to CA Immo were Greenberg Traurig (legal), KPMG (tax), Gleeds (technical) and Cushman & Wakefield (commercial).
