Vienna-headquartered investment advsior FLE has made its Warsaw debut with the acquisition of Mokotow Plaza, a Grade A office building in the Mokotow Business District of Warsaw, Poland, from M7 Real Estate.
Mokotow Plaza, which comprises 15,600 m2 of modern office space across five floors, is situated at 6 Postepu Street in an established non-central business hub on the outskirts of Warsaw.
M7 acquired the property in 2019, following which it implemented a comprehensive asset management strategy, refreshing the common areas, introducing new lobby space and a reception, as well as living plants, artwork and shower facilities.
These active asset management activities have increased occupancy of the building to 80%, extended the weighted average lease term to 6.5 years, and significantly improved the net operating income.
Existing occupiers include EnelMed, SDI Media, Securitas Polska, BDO, Rockwool and IYUNO.
Launched in 2018, M7 POLAF, a dedicated Polish investment fund, is fully invested in a portfolio of office, light industrial and logistics assets totalling 99,600 m2 across Poland. The Fund’s investors include global high net worth individuals, family offices and sovereign wealth investors from Europe, Hong Kong and the Middle East.
Katarzyna Parkot, managing director in Poland at M7, commented: 'This disposal illustrates our ability to execute our asset management strategy in a competitive location, whilst leveraging local expertise and relationships in order to deliver strong returns for investors.
'We saw an opportunity to benefit from the urban transformation underway in this district of Warsaw when acquiring Mokotow Plaza, targeting new occupiers to increase the occupancy. After assessing the current investor demand for stabilised assets, it was concluded that now was the optimum time for the Fund to dispose of Mokotow Plaza, resulting in strong returns for our investors.'
M7 was advised by Avison Young.
