International real estate firm Hines has acquired Wola Center, a 34,000 m2 office asset in Warsaw, on behalf of the Hines European Value Fund (HEVF 1) from Polish property company Develia.
Financial details were not disclosed.
Wola Center comprises four interlinked buildings around a central atrium and is located in the CBD West, the city’s modern business and retail centre. The building was developed in 2013.
Wojciech Rumian for Hines, said: 'Wola Center is one of Warsaw’s best-known and most prestigious office schemes, with the quality of space, location and tenant profile making this a landmark acquisition for Hines in this region.
'CBD West is benefiting from significant public infrastructure investment, and with upgrades Hines will be making to the vacated space, we expect occupier demand will be extensive.'
The acquisition represents the eighth portfolio investment for HEVF 1, the flagship core plus/value-add fund, for which Hines raised €721 mln of equity commitments in closings from July 2017 to August 2018, exceeding the original fund target size by over 40%.
The fund’s portfolio of investments includes multi-sector assets in Germany, the UK, Denmark, Spain and Italy.
The 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 space before re-leasing, the firm said.
Paul White, HEVF 1 fund manager, added: '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.'
