Immoeast acquires Warsaw offices for EUR 80 mln

Immoeast has acquired 'Brama Zachodnia', a 14-floor office building in Warsaw, for a total investment of EUR 80 mln. The property, completed in 2001, has an underground garage and usable area of 36,000 m². Swedish telecommunications giant Ericsson rents about 25% of the space. Other tenants include Gtech, Sagem Communication, Provident Polska and Marsh and McLennan.

The name of the seller of the property and the anticipated investment yield were not disclosed. However, researchers at merchant bank Kempen & Co. calculated a potential yield of above 7% based on the floor space (36,000 m2) and a rent 20% below prime levels. Expressing a positive judgement about the acquisition, they noted that prime yields have already reached levels below 6% in Warsaw this year.

Brama Zachodnia is located in the Jerozolimskie Corridor, which Immoeast said has gained enormously in importance as an office location in the past few years. It is close to Warsaw's most important hubs for buses, trains and trams. An underground trail station will be built near the area in the new few years.

The latest acquisition increases Immoeast's presence in Jerozolimskie Corridor alongside the 20,000 m² Mistral office property and the 125,000 m² Equator project which is being developed adjacent to Brama Zachodnia. In total Immoeast has 25 properties in the Polish capital with a total lettable area of one million square metres.

Immoeast said that in the first six months of the current fiscal year it has completed investments totalling EUR 4.1 bn or 82% of the EUR 5 bn investment programme planned for 2006/7.

Immoeast was founded in 1999 as a subsidiary of Immofinanz to manage the parent company's activities in Central Europe.





IMMOEAST AG was founded in 1999 as a subsidiary of IMMOFINANZ to manage the parent company's activities in Central Europe