Eika Real Estate Fund (EREF) has strengthened its presence in Poland with the acquisition of the Big office building in the heart of Krakow, for an undisclosed amount.
The property, completed in 2018, offers nearly 11,000 m2 of space in a prime city centre location and boasts a BREEAM New Construction Excellent rating. The office building developer is Ghelamco Poland.
This acquisition also includes a freehold plot of land within Krakow's central district.
The property is fully leased to US financial services company State Street Bank. It boasts a rooftop terrace and beehives, installed at the initiative of both the building owner and State Street Bank. Currently, only 6.1% of the space is vacant and negotiations are ongoing with potential tenants.
Viktorija Orkine, Head of Eika Asset Management, commented: ‘For investors, Poland currently offers great investment opportunities. With foreign investors retreating from Poland, the majority of its office market liquidity has concentrated in Warsaw, leaving the regional city office market liquidity scarcer. As a result, we are in a position to negotiate with large international players and acquire offices at attractive prices that were not available before. At the moment, high quality assets with stable cash flows in Poland can obtain competitive financing from both local and foreign (German, Austrian) banks.’
Situated in Krakow's western city center and surrounded by a large leisure and recreational area, the property offers easy access to the historic Old Town and other areas of the city. The Krakow office market is considered a hub for stable international tenants seeking sustainable and modern workplaces.
The acquisition aligns with EREF's commitment to investing in asset classes with attractive risk-adjusted returns. The fund intends to further bolster its Polish portfolio by pursuing investments in logistics, office, and retail park assets.
SSW advised Eika Real Estate Fund on the acquisition.
Eika Real Estate Fund is an investment fund established by Lithuanian investment management company Eika Asset Management. Eika is currently investing mainly in the CEE region.
