Austrian listed real estate company Immoeast has expanded further in Poland, with the finalisation of two investments, totalling EUR 63 mln, in business locations in Warsaw.
Austrian listed real estate company Immoeast has expanded further in Poland, with the finalisation of two investments, totalling EUR 63 mln, in business locations in Warsaw.
The first of these is the Rondo development - a 17-storey office building, with 20,000 m2 of lettable space. It is being built by Immoeast as part of its 50% interest in real estate developer S+B CEE. Construction is due to start on the Rondo project this autumn and the development is due for completion by the summer of 2009 for a total investment of EUR 36 mln. An underground station links the Rondo directly to the public transportation system, 'a crucial benefit in the chronically traffic-plagued capital of Poland,' Immoeast said.
The second project is the 15,000 m2 Passat office building which was acquired for EUR 27 mln. The tenants include Polish building group Warbud and Korea's LG Electronics. Passat is directly connected to Mistral (19,500 m2), which Immoeast acquired at the beginning of 2006. Mistral is fully let by a subsidiary of the Vienna Insurance Group. Immoeast is also developing the 125,000 m2 Eqautor project in the city.
Following these two latest acquisitions, Immoeast's portfolio in Poland has grown to 61 properties with a total lettable area of 2.2 million m2 and a fair value of approximately EUR 1.3 bn. Measured in terms of usable space, with a share of 17% Poland is Immoeast's second largest investment location.
A few weeks ago, Immoeast raised EUR 2.84 bn - its largest capital increase to date - to help finance a EUR 6 bn investment programme for 2007-8. One third, or EUR 2 bn, has already been finalised.
