Degi invests EUR 122 mln in 'Poland's best office property'

The international arm of German property fund Degi is investing EUR 122 mln in the Focus Filtrowa office building in Warsaw in anticipation of rising rental values in the city. Completed in 2000, the 11-floor Focus Filtrowa provides almost 32,000 m² of lettable area in the central business district of the city. The property - awarded the title 'Poland's best office property' by the Polish Chamber of Architects and Engineers - was sold to Degi by closed-ended funds Sachsenfonds and LHI Leasing.

Noting that Poland's gross domestic product is forecast to rise by 4.8% in 2007 and that unemployment continues to fall, Degi said the country is one of the 'growth drivers' in Central Europe. The capital's office market is seeing a corresponding rise in demand. 'Against this background, we are confident that at this location, especially for high quality properties, we are going to see rental increases of up to 20% in the next three years,' said Malcolm Morgan, Degi's managing director.

This is the second acquisition by Degi International in Warsaw. Back in March 2006, Degi acquired the Metropolitan office property in the north of the city for a total investment of EUR 178 mln. The property designed by Sir Norman Foster provides almost 40,000 m² of lettable area.